One Alliance North America Insurance Company, the US domestic market homeowners and commercial lines specialist, has now raised the target size for its debut One Shield Re Ltd. (Series 2026-1) catastrophe bond issuance, with the company now looking to secure up to $125 million of multi-peril reinsurance, Artemis has learned.
One Alliance North America entered the catastrophe bond market for the first time in mid-March, with an initial target to secure $100 million or more in multi-peril reinsurance through its debut One Shield Re Series 2026-1 issuance.
However, sources have now told us that the insurer is looking to secure between the initial $100 million and as much as $125 million of reinsurance protection through this One Shield Re Ltd. (Series 2026-1) deal.
As we’ve previously explained, for this One Shield Re 2026-1 deal, Bermuda based special purpose insurer One Shield Re Ltd. is offering a single Class A tranche of Series 2026-1 notes, that will be sold to investors, and the proceeds used to collateralize a reinsurance agreement with the sponsor, One Alliance North America.
As mentioned, we now understand that the target is for One Shield Re Ltd. to issue between the initial $100 million and as much as $125 million in Series 2026-1 Class A notes.
The cat bond is designed to provide One Alliance North America with a three-year source of named storm and wildfire reinsurance, on an indemnity trigger and per-occurrence basis, running from issuance through to April 2029.
As we’ve explained before, the named storm reinsurance is for the states of Florida, Georgia, Hawaii, North Carolina, South Carolina and Texas, while the fire protection is solely for the state of California.
The now up to $125 million of Class A notes that One Shield Re Ltd. is offering would attach their coverage at $95 million of losses, and exhaust at $220 million, covering a share of a larger layer.
The Class A notes have an initial attachment probability of 4.55%, an initial base expected loss of 2.45%, and they were originally being offered to cat bond investors with price guidance for a risk interest spread of between 7.5% and 8.25%.
We’re now told that the spread guidance has been lowered to the single figure of 8%, so towards the lower-end of the initial range.
As a result, it seems there is a strong chance One Alliance North America Insurance Company will look to secure more than its initially targeted reinsurance from its debut catastrophe bond.
We’ll keep you updated as this One Shield Re Ltd. (Series 2026-1) issuance progresses to final pricing and settlement.
As a reminder, you can read all about this One Shield Re Ltd. (Series 2026-1) cat bond and every other catastrophe bond deal ever issued in our Artemis Deal Directory.
