AXIS gets $140m Northshore Re II cat bond at reduced pricing

Global specialty insurance and reinsurance underwriter AXIS Capital has now secured its latest catastrophe bond at attractive terms, with the upsized $140 million of peak-peril catastrophe reinsurance protection from its new Northshore Re II Ltd. (Series 2022-1) catastrophe bond issuance coming at a reduced pricing level.

AXIS Capital becomes the fourth catastrophe bond sponsor of the last few weeks to secure attractive execution and pricing, as the catastrophe bond market becomes more balanced, in terms of supply and demand, with spread widening slowing or coming to a halt.

This new issuance is the sixth Northshore Re branded catastrophe bond sponsored by AXIS Capital.

The company first entered the cat bond market back in 2013 and details of every AXIS sponsored cat bond can be found in our Deal Directory.

When this new deal was launched around a fortnight ago, AXIS was seeking $100 million or more in reinsurance protection from the deal.

Then, as we reported earlier this week, AXIS was aiming to upsize the deal and it became likely Northshore Re II Ltd. would issue a $140 million single tranche of Series 2022-1 Class A notes to provide AXIS with reinsurance coverage against losses from US named storms (inc. Puerto Rico & Virgin Islands), as well as U.S. & Canada earthquake risks.

Which it has now achieved, with the notes now priced and confirmed to provide $140 million of retro reinsurance protection to AXIS and subsidiaries across a three year term to July 8th 2025, on annual aggregate and weighted industry loss trigger basis.

The $140 million in Series 2022-1 Class A notes have an initial attachment probability of 2.48% and come with an initial expected loss of 2.02%.

The Northshore Re II 2022-1 notes were first offered to cat bond investors with price guidance in a range from 8.25% to 8.75%.

As we had reported, that guidance was updated and lowered to between 8% and 8.25%.

We’re now told that as well as upsizing, AXIS has secured its latest cat bond to pay investors an 8% coupon, so a reduced spread and below the originally marketed guidance.

So, AXIS is confirmed as the latest sponsor to secure cat bond coverage executed at an attractive pricing level, compared to the guidance, further evidencing the more-balanced supply-demand equilibrium now being seen in the cat bond market.

You can read all about this Northshore Re II Ltd. (Series 2022-1) catastrophe bond from AXIS Capital and every other cat bond deal ever issued in the extensive Artemis Deal Directory.