Arch Capital Group has returned to the catastrophe bond market for its third sponsorship, targeting $100 million of capital markets backed property catastrophe retrocession for peak North American perils from a Ramble Re Ltd. (Series 2026-1) issuance, Artemis can report.
That was the first cat bond under the Ramble Re name for Arch Capital and the coverage from it runs to the end of February 2027, so it is encouraging to learn today that the company has returned for another cat bond sponsorship.
This new Ramble Re 2026-1 cat bond is designed to provide similar peak North American peril retro reinsurance for the Arch Reinsurance entity of Arch Capital Group.
Bermuda based special purpose insurer Ramble Re Ltd. will look to issue a single tranche of Series 2026-1 Class A notes that will be sold to investors and the proceeds used to collateralize a retrocessional reinsurance agreement between the SPI and Arch Re.
A $100 million tranche of notes is currently on offer and the protection the notes will provide to Arch Re will be on a per-occurrence and weighted industry loss index trigger basis, over a three-year term, we understand.
The Ramble Re 2026-1 cat bond notes will provide industry-loss based retro to Arch Re, covering significant US Northeast named storm events and US or Canada earthquake loss events, which is the same as the first Ramble Re deal.
We understand that the $100 million of Series 2026-1 Class A notes that Ramble Re Ltd. is offering will come with an initial attachment probability of 4.14%, an initial expected loss of 3.17% and are being marketed to investors with price guidance for a risk interest spread of between 6% and 6.5%.
At issuance, the Ramble Re 2024-1 cat bond notes had an initial expected loss of 3.19% and priced to pay investors a spread of 6.25%.
The initial price guidance for the new 2026-1 offering is not that different, so it will be interesting to see how strong the execution can be for Arch this time around given the appetite for new risk among investors and the fact the market has ample cash from maturities at this time as well.
It’s good to see Arch Capital returning to add more catastrophe bond coverage this year.
The company is no stranger to insurance-linked securities of course, given it acts as a facilitator in the market through provision of fronting services and also offers structures through which investors can partner in its underwriting as well. Plus, Arch has also sponsored numerous mortgage insurance-linked notes issuances over the years as well.
However, this is only the third property cat bond to be sponsored by Arch Capital, which given the re/insurer’s stature in the market is still a little surprising and makes it all the more notable to see the company back and looking to stagger maturities of its cat bond coverage with this new deal.
You can read all about this Ramble Re Ltd. (Series 2026-1) cat bond sponsored by Arch and every other catastrophe bond deal in our Artemis Deal Directory.
