1 month ago
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NN Group’s, or Nationale-Nederlanden, latest catastrophe bond has seen its price guidance range fall, we understand, with the still €75 million Orange Capital Re DAC (Series 2024-1) issuance now looking likely to price at the bottom of initial guidance, or below.
As Artemis reported on October 22nd, NN Group has returned to the catastrophe bond market looking to secure €75 million or more in collateralised reinsurance to cover European catastrophe perils.
The transaction appears to be a renewal of NN Group’s €75 million debut Orange Capital Re DAC 2021-1 catastrophe bond issuance that runs through to the end of this year. NN Group also sponsored a €75 million of reinsurance coverage with the Orange Capital Re DAC (Series 2023-1) issuance that will remain in-force and sits lower down in its reinsurance tower.
With this latest cat bond from the insurer, Orange Capital Re Designated Activity Company (DAC) will issue a single tranche of €75 million or more Class A Series 2024-1 catastrophe bond notes to provide NN Group with catastrophe reinsurance covering windstorm and severe thunderstorm risks in Belgium and the Netherlands, although with the exposure mostly concentrated on the latter.
The new Orange Capital Re 2024-1 cat bond will provide reinsurance on an indemnity trigger and per-occurrence basis, running across a four year term, from January 2025 to the end of 2028.
We’re told by sources that so far the issuance remains at €75 million in size.
But, we’re also told that the Series 2024-1 Class A notes issued by Orange Capital Re DAC, which were first offered to cat bond investors with spread price guidance in a range from 6.5% to 7%, are now being offered with an updated and lowered guidance range, for pricing of between 6.25% and 6.5%.
As a result, it looks like yet another diversifying cat bond is set to price keenly for the sponsor, likely reflecting strong investor demand for investment opportunities outside of US wind.
You can read all about the Orange Capital Re DAC (Series 2024-1) catastrophe bond and every cat bond deal ever issued in our Artemis Deal Directory.
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