Olympus Insurance Company, a Florida homeowners specialist, is now aiming to upsize its debut catastrophe bond sponsorship, with the target size for the Abacab Re Ltd. (Series 2026-1) transaction now updated to between $100 million and $150 million of reinsurance limit, Artemis has learned.
Initially, the insurers target was to secure $100 million of reinsurance from its debut cat bond sponsorship.
Now, sources have told us that the target size is for up to $150 million of notes to be issued by Abacab Re Ltd., while at the same time the price guidance has been lowered.
In addition, it seems 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 now, Abacab Re Ltd. is offering a single Class A tranche of between $100 million and $150 million of Series 2026-1 catastrophe bond notes.
These 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 now larger 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%.
We’re now told that price guidance range has been revised and lowered, to an updated range of spreads of between 7% and 7.75%.
Which in addition to the deal now moving its settlement date into April, shows Olympus 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.
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.
