Mangrove Property Insurance is now aiming to secure up to $111 million of named storm reinsurance protection from its first Buttonwood Re Ltd. (Series 2026-1) catastrophe bond issuance, while the price guidance has been adjusted for each of the tranches of notes being offered, Artemis has learned.
For its first catastrophe bond sponsorship under Buttonwood Re, Mangrove is aiming to secure both occurrence and aggregate reinsurance to protect its business against losses from named storms and hurricanes in the state of Florida.
Mangrove was initially seeking $100 million of reinsurance across issuance of four tranches of Series 2026-1 cat bond notes by Buttonwood Re, that will be sold to investors and the proceeds used to collateralize reinsurance agreements with the cedent, Mangrove.
Now, we’re told that this debut cat bond under Buttonwood Re now targets between the initial $100 million and up to $111 million of named storm reinsurance protection in the state of Florida for Mangrove.
At the same time as which, the price guidance has been adjusted for each of the tranches of notes on offer.
As we’ve explained before, the first three tranches of notes on offer will provide indemnity and per-occurrence reinsurance, while the fourth will provide a source of indemnity triggered annual aggregate protection, all covering named storms and set to run across a roughly three-year term.
The Class A tranche of Series 2026-1 occurrence notes remain at a target size of $25 million, that would attach their coverage at $145 million of losses and exhaust it at $305 million, giving them an initial attachment probability of 1.38%, and an initial base expected loss of 1.10%.
Initially, these notes were offered to cat bond investors with spread price guidance in a range from 5.5% to 6.25%. That price guidance has been updated to a tighter spread of between 5% to 5.5%, so below the initial guidance.
Buttonwood Re continues to offer a $25 million tranche of Series 2026-1 Class B occurrence notes that sit beneath the A’s and would attach their coverage at $145 million of losses, and exhaust it at $275 million, giving them an initial attachment probability of 2.18%, and an initial base expected loss of 1.71%.
These notes were originally offered to cat bond investors with spread price guidance in a range from 6.5% to 7.25%. That price guidance has now been tightened within guidance at between 6.5% to 7%, we understand.
A further tranche of Series 2026-1 Class C occurrence notes remain at their targeted size of $25 million. These notes sit beneath the B’s and would attach their coverage at $145 million of losses and exhaust it at $345 million, giving them an initial attachment probability of 6.78%, and an initial base expected loss of 2.59%.
Initially, these notes were offered to cat bond investors with spread price guidance in a range from 8% to 8.75%. That guidance has now been narrowed to a tighter spread of 8% to 8.25%, so within guidance.
The final tranche of Series 2026-1 Class D notes are now targeted at between $25 million and up to $36 million, we understand.
These notes will provide annual aggregate reinsurance coverage and come with an event deductible of $6 million and per-event cap on contribution of $24 million. The Class D notes would attach their coverage at $48 million of losses and exhaust it at $96 million, giving them an initial attachment probability of 0.42%, and an initial base expected loss of 0.13%.
These Class D notes were offered to cat bond investors with spread price guidance in a range from 6.5% to 7.25%, but that price guidance has now been updated to a tighter spread of between 6% to 6.5%, so below the initial range.
It appears that Mangrove is open to securing more reinsurance coverage than was initially targeted with its debut cat bond deal.
As a reminder, you can read all about this new Buttonwood Re Ltd. (Series 2026-1) catastrophe bond and view details of more than 1,000 other cat bond issuances in the extensive Artemis Deal Directory.
