GeoVera lifts Veraison Re 2025-1 cat bond target again, to as much as $450m

GeoVera Insurance Holdings, Ltd. has increased the targeted amount of earthquake reinsurance protection it seeks from capital market investors through its new Veraison Re Ltd. (Series 2025-1) catastrophe bond for a second time, with now up to $450 million of coverage being sought, Artemis understands.

As we have been reporting, GeoVera Insurance Holdings, Ltd returned to the cat bond market with an initial target to secure $275 million of earthquake reinsurance protection, from what will become the company’s third Veraison Re cat bond.

We were then told that GeoVera was looking to upsize its latest catastrophe bond, with the target for this Veraison Re 2025-2 issuance lifted to between $350 million and $400 million.

Now, we’re told that a second increase to the target size for this new catastrophe bond has occurred, with now from $425 million to $450 million of earthquake reinsurance protection being sought by GeoVera.

GeoVera is targeting a three-year source of US earthquake reinsurance protection from the capital markets on an indemnity trigger and per-occurrence basis through this new cat bond.

What was a $200 million tranche of Series 2025-1 Class A notes were first increased to between $250 million to $275 million in size, but have now been increased further to $300 million, we are told.

The Class A notes will come with an initial expected loss of 1.43%. They were first offered to investors with price guidance in a range from 4% to 4.5%, which then fell to 3.50% to 4.00% and now the price guidance has been fixed at the lower-end, for a spread of 3.5%.

What was a $75 million tranche of Class B notes were first increased to between $100 million and $125 million, but now are being pitched at up to $150 million in size, sources explained.

The Class B notes have an initial expected loss of 2.57%. They were first offered to investors with price guidance in a range from 6% to 6.75%, which then fell to 5.50% to 6.00% and now has fallen further to between 5% and 5.5%.

GeoVera is looking to maximise its opportunity to bulk up on reinsurance from the capital markets with this deal, capitalising on the strong demand being seen from the cat bond investor base for new issues, to increase its protection and reduce the cost of it.

You can read all about this Veraison Re Ltd. (Series 2025-1) in the extensive Artemis Deal Directory that includes details on almost every cat bond ever issued.