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American Coastal places $25.5 million cat bond for hurricane retention
The Series 2026-2 notes run from August 1, 2026 through late May 2027, and proceeds are expected to collateralize a reinsurance agreement tied to American Coastal Insurance’s first-event retention buy-down.
American Coastal Insurance Company has returned to the catastrophe bond market with a new $25.5 million Armor Re II Ltd. (Series 2026-2) issuance, according to Artemis.
The placement appears intended to support American Coastal’s reinsurance tower by reducing sponsors’ first-event reinsurance retention for the hurricane season, with details on the underlying coverage described as limited.
Artemis reports that Armor Re II Ltd. issued a single $25.5 million tranche of Series 2026-2 Class A notes. Proceeds from the notes sale are expected to collateralize a reinsurance agreement between the special purpose insurer and American Coastal Insurance.
The notes are structured as discounted or zero coupon instruments, with a term from August 1, 2026 to the end of May 2027, and maturity due early June the following year. Artemis adds that the deal likely provides about one year of protection and is assumed to include an indemnity trigger consistent with American Coastal’s other reinsurance and cat bond arrangements.