Olympus Insurance Company, a Florida homeowners specialist, has now successfully secured $120 million of reinsurance protection from its debut Abacab Re Ltd. (Series 2026-1) catastrophe bond sponsorship, with the notes priced approximately 23% below the mid-point of initial guidance, Artemis understands.
As we reported in our first update on this transaction, the target size was lifted with up to $150 million of notes set to be issued by Abacab Re Ltd., while at the same time the price guidance for the notes on offer was also lowered.
In our second update on this Abacab Re cat bond, the target size remained at between $100 million and $150 million, but Olympus Insurance was targeting strong price execution with the guidance range for the risk interest spread of the notes available lowered again.
Now, we’ve learned that Olympus Insurance, which is another carrier linked to expansive MGU SageSure, has secured $120 million of reinsurance limit from its debut cat bond sponsorship at what appears very attractive pricing, with the risk interest spread finalised well-below the initial guidance range.
As a result, Bermuda based special purpose insurer Abacab Re Ltd. will issue a $120 million tranche of Series 2026-1 Class A catastrophe bond notes.
These Abacab Re Series 2026-1 Class A notes will provide the sponsor Olympus Insurance with a $120 million three-year source of Florida named storm reinsurance, on an indemnity trigger and per-occurrence basis, running from June 2026 through to the end of May 2029.
The Abacab Re Series 2026-1 Class A notes come with an initial base expected loss of 1.66%. They were first offered to investors with price guidance for a risk interest spread of between 7.75% and 8.5%, which was then lowered to between 7% and 7.75% and then lowered further to a revised range of 6.25% to 7%.
We’re now told that at final pricing the Abacab Re 2026-1 Class A notes have been finalised to pay investors an initial risk interest spread of 6.25%, so at the low-end of twice reduced guidance and representing a roughly 23% decline from the initial guidance mid-point.
Which is particularly strong execution for a first-time sponsor in the catastrophe bond market, reflecting investor confidence in Olympus Insurance and SageSure’s franchise in the market.
As a reminder, you can read all about this Abacab Re Ltd. (Series 2026-1) cat bond and every other catastrophe bond deal ever issued in our Artemis Deal Directory.
