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Arthur Re Tranquil Re cat bond upsized to $75 million on demand
The $75 million issuance priced at 12.00% and covers U.S. named storms and earthquakes through June 2028.
A catastrophe bond sponsored through the Arthur Re Ltd. platform has been closed after strong investor demand, leading to an upsizing for Nectaris Re Ltd. and its Tranquil Re 2026-1 issuance.
Artemis reports that the bond, managed by Leadenhall Capital Partners LLP for Nectaris Re Ltd., increased from an initial $60 million target to $75 million, with final pricing set at 12.00%. Gallagher Securities served as sole structuring agent and bookrunner for the transaction.
The cat bond is described as providing Nectaris Re Ltd. with multi-year, fully-collateralized multi-peril US peak peril retrocessional reinsurance from the capital markets. It covers U.S. named storms and earthquakes over a roughly two-year term ending June 2028.
Artemis also notes the transaction was the third catastrophe bond issued using the Arthur Re platform, which Gallagher Re said is designed to make issuing index trigger cat bonds more cost effective and efficient. Gallagher Securities said the upsizing was driven by a 1.67x risk-return multiple, while executives credited the diversified global ILS investor base for backing the deal.