Specialist insurer and reinsurer Inigo Limited has returned to the catastrophe bond market for the fifth consecutive year, issuing its largest series of cat bonds totalling $255 million via Montoya Re Ltd., featuring multiple tranches and introducing cover for Australian earthquake risk for the first time.
Inigo’s Syndicate 1301 at Lloyd’s will remain the beneficiary of the retrocessional reinsurance protection provided by the Montoya Re 2025-2 catastrophe bond, with Aon Securities acting as sole structuring agent and bookrunner.
The cat bond is structured with three distinct tranches of notes. The Class A notes, sized at $175 million, provide annual aggregate protection with an initial attachment probability of 3.86% and an expected loss of 2.26%.
The Class B notes, issued at $50 million, feature an initial attachment probability of 8.59% and an expected loss of 7.19%, and include Australian earthquake cover.
The Class C notes, set at $30 million, provide second and subsequent event cover with an initial attachment probability of 2.8% and an expected loss of 2.38%.
These tranches of notes will provide Inigo with multi-year retrocessional reinsurance protection for peak perils including U.S. named storm, as well as earthquake risk in the U.S., Canada and Australia, and utilise PCS and PERILS based industry loss index triggers.
To read more about the Montoya Re Ltd. (Series 2025-2) cat bond and others, visit Artemis’ Deal Directory.
Adam Alvarez, Head of Capital and Climate Strategy at Inigo commented, “We are very pleased to have returned to the catastrophe bond market for the fifth consecutive year. This transaction expands our rolling programme of protection which has grown with Inigo. At $255m, the transaction is more than double the size of any previous issuance and will be a cornerstone of our capital stack.
“This year, we have introduced Australian earthquake risk and extended the tenor of the bonds to a little over four years. By splitting the cover into three tranches, we were able to match our various hedging requirements with different investor appetites.”
Inigo’s previous catastrophe bond issuances have secured a total of $440 million of collateralised retrocessional reinsurance.
