Mapfre Re, the Spanish global reinsurance company, is now aiming for reduced pricing for its latest catastrophe bond sponsorship, with the still $200 million Recoletos Re DAC (Series 2026-1) US named storm issuance cat bond transaction now seeing its price target reduced to the low-end of guidance, Artemis can report.
Mapfre Re previously secured $125 million of annual aggregate US named storm retrocession from the capital markets with its debut Recoletos Re DAC (Series 2024-1) catastrophe bond in December 2024.
The company then returned to the market in November 2025, securing €125 million of European windstorm protection from the Recoletos Re DAC (Series 2025-1), its second cat bond sponsorship.
You can read about all of Mapfre Re’s catastrophe bonds in our Deal Directory.
Initially, Mapfre Re was targeting a $200 million source of US named storm protection on an indemnity trigger and per-occurrence basis from this its Recoletos Re DAC (Series 2026-1) issuance.
We are told the target remains the same, but like most catastrophe bond sponsors of late, Mapfre Re is seeking to adjust the pricing of the risk interest spread it will pay for the coverage, with the tranche of notes on offer having dropped to the lowest end of initial guidance.
Recoletos Re DAC, Mapfre Re’s Ireland-based issuance vehicle, continues to target issuance of a $200 million single tranche of Series 2026-1 Class A notes, that will be sold to cat bond investors and the proceeds be used to collateralize a retrocession agreement between the issuing vehicle and Mapfre Re.
As we’ve explained before, that retrocessional agreement will provide US named storm reinsurance protection for all states except Florida on an indemnity trigger and per-occurrence basis to the sponsor, across a roughly three year term to the end of June 2029,
The coverage will also cascade via Mapfre Re, in order to extend to other group entities including certain insurer subsidiaries
The still $200 million of Series 2026-1 Class A notes that Recoletos Re DAC is offering will have an attachment point at $150 million of losses and exhaust their coverage at $350 million.
The Class A notes come with an initial attachment probability of 2.57%, an initial base expected loss of 1.836%, and initially these notes were being offered to cat investors with spread price guidance in a range from 4.25% to 4.75%.
We are told that guidance has now been revised to a single figure of 4.25%, so the lowest end of guidance.
While it appears that Mapfre Re is prioritising price over size of its latest catastrophe bond, it’s important to remember that the company could choose to upsize it after it has an indication of the final pricing, which can often happen during the marketing phase of cat bonds.
As a reminder, you can read all about this new Recoletos Re DAC (Series 2026-1) catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory.
