Specialty insurer and reinsurer Inigo Limited has returned to the catastrophe bond market for the fifth consecutive year, issuing the largest series of catastrophe bonds totaling $255 million through Montoya Re Ltd., including multiple tranches, and introducing Australian earthquake risk protection for the first time.
Lloyd’s Inigo Syndicate 1301 will remain the beneficiary of the retrocession reinsurance protection provided by the Montoya Re 2025-2 Cat Bonds, with Aon Securities acting as sole structuring agent and bookrunner.
Cat bonds are made up of three different tranches of notes. The Class A notes have a size of $175 million and provide annual overall protection with an initial seizure probability of 3.86% and an expected loss of 2.26%.
The Class B notes are issued in an amount of US$50 million with an initial attachment probability of 8.59%, an expected loss of 7.19% and include Australian earthquake protection.
The Class C notes have a fixed amount of US$30 million, providing protection against second and subsequent events, with an initial attachment probability of 2.8% and an expected loss of 2.38%.
The notes will provide Inigo with multi-year retrocessional reinsurance protection against peak risks, including U.S. named storms and earthquake risks in the U.S., Canada and Australia, and will be triggered using industry loss indexes based on PCS and PERILS.
To learn more about Montoya Re Ltd. (Series 2025-2) Cat Bonds and other bonds, please visit Artemis’ trade directory.
Adam Alvarez, Head of Capital and Climate Strategy at Inigo, commented: “We are pleased to return to the catastrophe bond market for the fifth consecutive year. This transaction expands the rolling protection program we have developed with Inigo. At $255 million, this transaction is more than double the size of any previous issuance and will become a cornerstone of our capital architecture.”
“This year we introduced Australian earthquake risk and extended the bond maturity to just over four years. By splitting the bond into three tranches, we were able to match the various hedging requirements to different investor appetites.”
Inigo’s previously issued catastrophe bonds have received mortgage retrocession reinsurance totaling $440 million.
