Everest Group has now priced its latest catastrophe bonds, securing the upsized $630 million of multi-peril collateralized North America focused retrocession from its new Kilimanjaro III Re Ltd. (Series 2026-1) and Kilimanjaro III Re Ltd. (Series 2026-2) transactions, while the six tranches of notes all priced at their lowest ends of guidance, Artemis can report.
As we then reported in our first update on this deal, two tranches of notes were withdrawn from the issuance and the target size rose to as much as $675 million of notes to be issued across the remaining six, while at the same time the price guidance was lowered for the first time.
In a second update we reported that the size targets had been fixed, with an aggregate amount of $630 million of retrocessional reinsurance limit being sought, while the price guidance had been lowered further for all of the six tranches of notes still being offered.
Now, we’re told that Everest Group successfully priced the six tranches of Kilimanjaro Re III cat bond notes, securing the upsized $630 million of retrocession at the lowest-ends of pricing in each case.
As a result, Everest has secured broad North American peak peril retrocession from the capital markets, on both three and four years terms across both annual aggregate and per-occurrence protection, bolstering its retro protection with the help of insurance-linked securities investors.
The now priced and secured $630 million of retro across the two Kilimanjaro Re III cat bond series provides Everest with retrocessional protection to cover impacts of major industry loss events caused by named storms and earthquakes that impact the United States, Puerto Rico, U.S. Virgin Islands, D.C., and Canada.
You can read about the full offering in our original article on these cat bond series and in the Deal Directory entries, while below we just detail the final sizes and pricing for the tranches that will now be issued on settlement next week.
Kilimanjaro III Re Ltd. Series 2026-1 – $350 million:
Class B-1 (three year, annual aggregate) – $70 million, priced at 11.5%
Class C-1 (three year, per-occurrence) – $60 million, priced at 7.75%
Class D-1 (three year, per-occurrence) – $220 million, priced at 11.75%
Kilimanjaro III Re Ltd. Series 2026-2 – $280 million:
Class A-2 (four year, annual aggregate) – $50 million, priced at 6.75%
Class B-2 (four year, annual aggregate) – $60 million, priced at 11.5%
Class D-2 (four year, per-occurrence) – $170 million, priced at 11.75%
All six tranches priced at the low-ends of reduced guidance, locking in this retro protection for Everest at attractive rates.
Everest remains a strategic retro buyer and uses catastrophe bonds to augment its protection for peak catastrophic perils, with these new series of notes demonstrating its ability to access large amounts of limit from the capital market investors.
At this time, Everest has $1.2 billion of catastrophe bond risk capital outstanding, according to the Artemis cat bond sponsor leaderboard.
With no scheduled catastrophe bond maturities due until 2028 now, Everest will soon have $1.83 billion of cat bond protection in-force once these new deals reach settlement later this month.
Details of every catastrophe bond sponsored by Everest Re can be found here.
You can read all about the Kilimanjaro III Re Ltd. (Series 2026-1) and Kilimanjaro III Re Ltd. (Series 2026-2) catastrophe bond series from Everest Re and every cat bond transaction ever issued in the extensive Artemis Deal Directory.
