Everest Group has fixed its target on an 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) catastrophe bonds, while the price guidance has fallen for a second time, Artemis has learned.
As we then reported in an update yesterday, two tranches of notes were withdrawn from the issuance and the target size rose to as much as $675 million of notes to be issued across the remaining six, while at the same time the price guidance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.
Now, we’re told that the size targets have been fixed, with an aggregate amount of $630 million of retrocessional reinsurance limit now being sought be Everest from the two series issuance of Kilimanjaro III Re cat bonds.
While at the same time the price guidance has been lowered further for all of the tranches of notes still being offered.
Initially, four tranches of notes were being offered under each series, with the Kilimanjaro III Re Ltd. (Series 2026-1) notes targeting three years of coverage and Kilimanjaro III Re Ltd. (Series 2026-2) notes targeting four years of coverage for the firm’s reinsurance entity Everest Re.
Within each of the series there were initially four tranches of notes, two targeting annual aggregate protection and two targeting retro on a per-occurrence basis.
The two tranches of notes that were withdrawn from the offering were the three-year aggregate Class A1 notes and the four-year occurrence Class C2 notes.
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 new target sizes and pricing for the tranches that remain on offer.
Everest now seeks $630 million of retro across the two Kilimanjaro Re III cat bond series that are being offered, in both three and four year formats, with aggregate and occurrence notes to cover impacts of major industry loss events named storms and earthquakes that impact the United States, Puerto Rico, U.S. Virgin Islands, D.C., and Canada.
Here are the latest details:
The remaining four-year Series 2026-2 Class A-2 annual aggregate notes are still targeted at $50 million in size. These notes come with an initial base expected loss of 4.35% and were first offered with price guidance in a range from 8% to 8.5%, which later fell to 7.25% to 8%. Now the guidance has fallen to 6.75% to 7.25%, we are told.
The annual aggregate three year Series 2026-1 Class B-1 and four year Series 2026-2 Class B-2 notes previously had an upsized target for between the original $100 million and $130 million of retro, but we’re now told the B-1’s are targeted to be $70 million in size and B-2’s $60 million. They have an initial base expected loss of 6.97% and were first offered with price guidance in a range from 12.25% to 12.75%, which fell to between 11.75% and 12.25%. Now the guidance has fallen further to 11.5% to 11.75%
The remaining C1 tranche of three-year occurrence notes (the four-year C2’s were withdrawn) were upsized to target between the original $50 million and as much as $75 million. We’re now told they look set to be $60 million. They have an initial base expected loss of 5.53% and were initially offered with price guidance in a range from 9% to 9.5%, which fell to between 8.25% and 9%. Now, the pricing has fallen again to 7.75% to 8.25%.
The three year Series 2026-1 Class D-1 and four year Series 2026-2 Class D-2 per-occurrence notes were targeted to upsize to between their initial sizing of $330 million and as much as $420 million across the two tranches. We’re now told the D-1’s target $220 million, while the D-2’s target $170 million. These notes have an initial base expected loss of 7.38% and were first offered with price guidance in a range from 12% to 12.5%, which was first updated to single figure of 12%. Sources have now told us the guidance has opened out to a range again, of 11.75% to 12%.
Everest is targeting strong price execution, like the majority of catastrophe bond sponsors at this time.
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.
