American European looks to upsize Charles River Re cat bond to $125m

American European Insurance Company is now seeking up to $125 million in named storm reinsurance protection for a coastal property book that is originated via MGA ShoreOne, through its debut Charles River Re Ltd. (Series 2024-1) catastrophe bond issuance.

American European Insurance Company entered the catastrophe bond market for the first time in March, seeking at least $100 million in protection for the portfolio of policies underwritten by managing general agent (MGA) ShoreOne Insurance Managers, a coastal property specialist that offers all-perils coverage including flood.

The subject business to this first Charles River Re catastrophe bond for American European Insurance, is all sourced through its relationship with ShoreOne.

Now, we understand the target is to secure up to $125 million of reinsurance through this Charles River Re 2024-1 cat bond, while at the same time we are told that the price guidance has been lowered as American European targets strong execution from the deal.

So, the goal now is to secure American European up to $125 million in multi-year named storm reinsurance, across a three-year term up until April 30th 2027, on a per-occurrence and indemnity trigger basis, covering loss events in the states of Massachusetts, New Jersey, New York and South Carolina.

The now up to $125 million of Class A notes come with an initial expected loss of 1.87% and were first offered to cat bond investors with spread pricing in a range from 7% to 7.5%, but we’re now told that range has dropped and been updated to new spread guidance of 6.75% to 7%.

So, American European is now targeting more capital markets backed reinsurance capacity than the original target, priced at the bottom end of guidance or lower, which would be another strong result for a debut catastrophe bond sponsor.

You can read all about this new Charles River Re Ltd. (Series 2024-1)  catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.