Arch Capital Group has now successfully upsized its latest catastrophe bond sponsorship, securing $150 million of property catastrophe retrocession for peak North American perils from the Ramble Re Ltd. (Series 2026-1) issuance, while the spreads settled at the low-end of reduced guidance, Artemis can report.
Initially, Arch Capital was targeting a $100 million source of peak peril catastrophe retrocessional reinsurance from this Ramble Re 2026-1 cat bond.
However, in our first update on this transaction, we learned that Arch Capital had raised its target for protection by 50% to $150 million.
At the same time, the price guidance for the Ramble Re 2026-1 cat bond notes on offer were lowered twice, which heavily reflects the continued attractive conditions for sponsors within the cat bond market.
Now, we’ve been told that Arch Capital has achieved solid execution on both fronts, securing the $150 million upsized amount of reinsurance protection priced at the lowest end of the reduced guidance range.
With the transaction now priced, special purpose insurer Ramble Re Ltd. will now issue a single $150 million tranche of Series 2026-1 Class A notes that will provide Arch Capital with a fully-collateralized source of per-occurrence and weighted industry loss index trigger retrocession, over a three-year term, covering significant US Northeast named storm events and US or Canada earthquake loss events.
The now confirmed $150 million of Series 2026-1 Class A notes that Ramble Re Ltd. will now issue, have an initial expected loss of 3.17%.
These notes were originally offered to cat bond investors with price guidance for a risk interest spread of between 6% and 6.5%, but that initially fell to between 5.5% and 6%, and then fell a second time to a revised range of 5% to 5.5%.
We’re now told the $150 million of notes have been priced to pay investors an initial risk interest spread of 5%, so the lowest end of reduced guidance.
Arch Capital Group has received very strong support from the catastrophe bond investor base, allowing it to secure its maximum target for retrocessional reinsurance from the cat bond market at much better than anticipated pricing.
As a reminder, 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.
