Zurich, the European headquartered global re/insurance company, has returned to the catastrophe bond market to sponsor its first deal since late 2012, seeking $125 million or more in US named storm and earthquake reinsurance protection with a Turicum Re Ltd. (Series 2026-1) issuance, Artemis can report.
Since then, the global insurance and reinsurance company has been absent from the market as a ceding entity or sponsor to natural catastrophe bonds, until 2026.
Turicum Re Ltd. has been established in Bermuda for issuing catastrophe bonds and with this first Series 2026-1 issuance the sponsor or cedent is said to be Zurich American Insurance, often better known as one of the main underwriting entities of Zurich North America.
We’re told that Turicum Re Ltd. is set to offer a single Class A tranche of Series 2026-1 notes to cat bond investors, with the proceeds from their sale set to collateralize a reinsurance agreement with Zurich American Insurance.
The currently $125 million of Turicum Re Series 2026-1 Class A catastrophe bond notes are designed to provide Zurich American with multi-year reinsurance protection against losses from US named storms and earthquakes. The reinsurance protection will also benefit inter-company pooling members of the Zurich group, we understand.
The protection will be structured on an indemnity trigger and per-occurrence basis and will run across a roughly three-year term to April 2029, we understand.
The $125 million of Turicum Re Series 2026-1 Class A cat bond notes would attach their coverage at $650 million of losses to the cedent and protect a share of losses up to exhaustion at $850 million.
The Class A notes will come with an initial attachment probability of 9.22%, an initial base expected loss of 7.88% and the cat bond is being offered to investors with price guidance for a risk interest spread in a range from 16.75% to 17.25%, sources said.
Which is a relatively high attachment probability, expected loss and spread for the cat bond market, which alongside the well-known and respected stature of the sponsor Zurich may well make this first Turicum Re offering attractive to cat bond fund managers and investors.
It’s good to see a major player like Zurich returning to the catastrophe bond market in 2026, as it shows the company recognising the efficiency, multi-year nature and currently attractive price dynamics of cat bond coverage, as an addition to its reinsurance tower.
In February we reported on Zurich’s main catastrophe reinsurance renewals, including its tower and a renewal of aggregate coverage. This new cat bond will add to the firm’s protection, while also diversifying its sources of risk capital.
You can read all about this new Turicum Re Ltd. (Series 2026-1) catastrophe bond and every other cat bond transaction ever issued in the extensive Artemis Deal Directory.
