Pricing dips below guidance for Brookfield’s debut Aragonite Re cat bond

The pricing for Canadian alternative investment manager and multinational Brookfield Corporation’s first catastrophe bond has been updated and lowered again, with the company now aiming to secure the $100 million Aragonite Re Ltd. (Series 2024-1) deal priced below the initial guidance.

Brookfield Corporation entered the catastrophe bond market for the first time in March, with a target to secure $100 million in property catastrophe insurance from the capital markets for its Brookfield Property Group arm and related entities.

Through this Aragonite Re 2024-1 catastrophe bond, Brookfield will secure a multi-year source of North American named storm and earthquake insurance protection, providing it with per-occurrence and indemnity trigger protection across the US and Canada, running across three annual risk periods to March 30th 2027.

The $100 million of Class A notes come with an initial expected loss of 0.59%. They were initially offered to cat bond investors with spread price guidance in a range from 5.75% to 6.50%.

As we reported last week, the price guidance was lowered, with a new range of spreads from 5.5% to 5.75% on offer.

Now, we’ve learned that the price guidance was reduced again, to a range of 5.25% to 5.5%.

Which indicates that Brookfield will price its debut Aragonite Re catastrophe bond below the low-end of the initial price guidance, which will be a strong result for this new cat bond market entrant.

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