Inigo lifts Montoya Re 2022-2 cat bond target to $110m, as price moves to top-end

Inigo, the London headquartered specialty insurance and reinsurance underwriter with a Lloyd’s syndicate, has lifted the target size for its second catastrophe bond issuance slightly, with the Montoya Re Ltd. (Series 2022-2) deal now pitched at up to $110 million in size, but with the coupon having moved to the top-end of initial guidance.

Inigo returned to the catastrophe bond market for its second issuance in November, seeking $100 million or more in collateralized reinsurance protection from the Montoya Re Series 2022-2 Class A notes.

Sources have now told us that the cat bond is now being marketed at up to $110 million in size, so with a small upsize on the cards for Inigo.

As a reminder, this second Montoya Re catastrophe bond is a little narrower in its coverage than the first issued earlier this year.

The Montoya Re Series 2022-2 Class A notes will provide Inigo with North American, including Canada, named storm and earthquake reinsurance protection, on an industry loss and annual aggregate basis across a three and a quarter year term to the end of March 2026.

The now marketed at between $100 million and $110 million of Class A notes come with an initial attachment probability of 4.25% and an initial expected loss of 3.18%.

At launch to investors, the notes were offered with coupon price guidance in a range from 13% to 14%.

We’re now told by sources that the price guidance has been fixed at the upper-end of that range, at 14%.

At this level the Montoya Re 2022-2 cat bond could offer investors a multiple-at-market of 4.4 times the initial base expected loss.

We’ll update you when the final size and pricing has been set for Inigo’s second catastrophe bond.

You can read all about this new Montoya Re Ltd. (Series 2022-2) catastrophe bond, the second from Inigo Insurance, as well as details on every other cat bond issued in our extensive Artemis Deal Directory.