Olympus Insurance Company, a Florida homeowners specialist, continues to seek between $100 million and $150 million of reinsurance limit from its Abacab Re Ltd. (Series 2026-1) catastrophe bond issuance, but the company continues to aim to capitalize on investor appetite and has lowered the price guidance for the notes on offer once again, Artemis has learned.
Initially, the company was aiming to secure $100 million of reinsurance from its debut cat bond sponsorship, but as we reported in our first update on this transaction, the target size was lifted for up to $150 million of notes to be issued by Abacab Re Ltd., while at the same time the price guidance for the notes on offer were also lowered.
We’re now told that $100 million to $150 million target remains unchanged, however, the insurer is still seeking to secure that protection at a more cost-effective rate, as the price guidance range for the spread of the tranche of notes available has been lowered once more.
As we’ve previously explained, it appears that Olympus (which is another carrier linked to expansive MGU SageSure) is going to give itself time to secure the best execution for its first cat bond, as this Abacab Re deal now looks likely to settle in April, so becoming a second-quarter deal.
So, Abacab Re Ltd. continues to offer a single Class A tranche of between $100 million and $150 million of Series 2026-1 catastrophe bond notes.
These Abacab Re Series 2026-1 Class A notes will provide the sponsor Olympus Insurance with a three-year source of Florida named storm reinsurance, on an indemnity trigger and per-occurrence basis, running from June 2026 through to the end of May 2029.
The Abacab Re Series 2026-1 Class A notes will have an initial base expected loss of 1.66% and were first offered to investors with price guidance for a risk interest spread of between 7.75% and 8.5%, which was then lowered to an updated range spread of between 7% and 7.75%.
We’re now told this price guidance has been lowered to a revised range of 6.25% and 7%.
With Olympus moving its settlement date for this deal into April, and once again lowering the price of the notes on offer, it clearly shows that the insurer is looking to capitalise on catastrophe bond investor appetite to potentially gain more reinsurance support from the capital markets at more attractive pricing, from its debut cat bond sponsorship.
As a reminder, you can read all about this Abacab Re Ltd. (Series 2026-1) cat bond and every other catastrophe bond deal ever issued in our Artemis Deal Directory.
