PURE lifts target for debut Ashera Re catastrophe bond to $105m

PURE, a high-net worth insurance specialist unit of the Tokio Marine Group, has raised the target size of its debut catastrophe bond to $105 million, while we understand that price guidance for the Ashera Re Ltd. (Series 2024-1) notes has been lowered.

PURE entered the catastrophe bond market for the first time at the start or March,  seeking capital markets backed and fully-collateralized peak peril catastrophe reinsurance to protect the portfolios of its Privilege Underwriters Reciprocal Exchange (PURE), which is Florida domiciled, and PURE Specialty Exchange, which is an Arizona-domiciled Domestic Surplus Lines insurer.

At the time of launch, the target was to secure $100 million of reinsurance against losses from named storms and earthquakes affecting the US and Canada, but sources now tell us the the target has been raised to $105 million.

The reinsurance will be on an indemnity trigger and per-occurrence basis, across a three-year term running from April 1st and cover PURE across a portfolio of its personal property insurance business lines, which includes high value homes, motor, art and collectibles, and personal boat policies.

The now $105 million of Series 2024-1 Class A notes that Ashera Re Ltd. is offering come with an initial base expected loss of 1.68% and were initially offered to cat bond investors with spread price guidance in a range from 5.25% to 5.75%.

As we explained, the risk of this cat bond is concentrated towards Florida named storms and California earthquake, in the main.

We’re now told that the spread guidance has been updated to a range of 5% to 5.25%, indicating PURE is hoping to price its debut catastrophe bond at the bottom of initial guidance, or lower.

You can read all about this new Ashera Re Ltd. (Series 2024-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.