Article ID: 4e3f56b52397bd24af64ef3e4b32f1bf2054a89c6f9954b6e0a9b43ea233841e
Source ID: primary:artemis.bm
Published At: -
Extraction Method: trafilatura
URL: https://www.artemis.bm/deal-directory/integrity-re-iii-ltd-series-2026-1/
Body Text
Integrity Re III Ltd. (Series 2026-1) – Full details: This will be the ninth catastrophe bond issuance under an Integrity Re name to provide reinsurance for sponsoring entities from the American Integrity Insurance Group. American Integrity is utilising Bermuda based special purpose insurer Integrity Re III Ltd. for the second time, for this latest cat bond from the company. Across the issuance there are four tranches of Series 2026-1 notes being offered by Integrity Re III Ltd., with more than $175 million in named storm reinsurance protection being targeted. All four classes of notes are designed to provide American Integrity with multi-year and fully-collateralized named storm reinsurance protection across the states of Florida, Georgia, North Carolina and South Carolina, on an indemnity trigger and per-occurrence basis. In addition, we’re told there is also an element of coverage for watercraft policy losses in the Bahamas as well, which is a novel inclusion. The reinsurance will run from June 1st for three years from this Integrity Re III 2026-1 cat bond, so aligned with American Integrity’s traditional reinsurance renewal. As we said, there is stated reinsurance and cat bonds that inure to these tranches with differences for each, hence the attachment points are after that is taken into consideration. A $75 million Class A tranche of notes that attach at $35 million and exhaust at $165 million, but we’re told are expected to have an effective first attachment at more than $2 billion of losses after inuring layers of the tower. The Class A notes come with an initial attachment probability of 1.61%, an initial base expected loss of 1.38% and are being offered to cat bond investors with price guidance in a range from 8% to 9%. A $50 million Class B tranche of notes would attach at $100 million and exhaust at $200 million, but we’re told are expected to have an effective first attachment at around $1.07 billion of losses after inuring layers of the tower. The Class B notes come with an initial attachment probability of 3.6%, an initial base expected loss of 3.39% and are being offered to cat bond investors with price guidance in a range from 12% to 13%. A $50 million Class C tranche of notes would attach at $390 million and exhaust at $590 million, but we’re told are expected to have an effective first attachment at around $870 million of losses after inuring layers of the tower. The Class C notes come with an initial attachment probability of 7.72%, an initial base expected loss of 4.56% and are being offered to cat bond investors with price guidance in a range from 17% to 19%. The final Class D tranche of notes are unsized and would attach at $200 million and exhaust at $390 million, which we understand to be where an effective first attachment would occur. The Class D notes come with an initial attachment probability of 15.12%, an initial base expected loss of 11.96% and at this stage sources said they have not come with price guidance, but given the expected loss level and the fact this is a riskier lower layer pricing would be anticipated to be considerably higher than the C’s. View all of our Artemis Live video interviews and subscribe to our podcast. All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online. Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
Metadata (JSON)
{
"score": 8.76
}