Inigo secures new Montoya Re cat bond at $110m and top-end price

Lloyd’s syndicate owner and specialty insurance and reinsurance underwriter Inigo has successfully secured $110 million of fully-collateralized property catastrophe reinsurance from the capital markets, as its new Montoya Re Ltd. (Series 2022-2) has now been priced.

Reflecting the hard market conditions for reinsurance and retrocession, Inigo’s successful second catastrophe bond sponsorship has come at a higher cost, with the $110 million of notes to be issued having priced at the top-end of guidance.

Originally, Inigo’s target for this its second cat bond issuance had been for $100 million of cover, but showing an appetite for more protection the company has successfully grown the Montoya Re 2022-2 deal to $110 million in size.

Inigo returned to the catastrophe bond market for its second issuance in November, and then sought to upsize the deal by $10 million earlier this week.

Now successfully upsized, the Montoya Re Series 2022-2 Class A notes will provide Inigo with $110 million of 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 $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%, but that was fixed at the upper-end of that range, at 14% and the notes have now been priced at that level.

Once this new Montoya Re cat bond settles, Inigo will have $225 million of catastrophe bond backed retro reinsurance protection in force, when its cat bond from March this year is included.

It’s encouraging to see Inigo making the cat bond market an increasingly important source of reinsurance cover for the company.

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.