American Family Mutual Insurance Company (AmFam) is now trying to upsize its latest catastrophe bond, with the goal size increasing from $175 million to now $250 million in protection from the 4 Lakes Re Ltd. (Series 2024-1)  cat bond issuance.

AmFam returned to the cat bond market in November with a goal to secure $175 million in multi-peril reinsurance protection to expand its capital markets backed catastrophe reinsurance.

This shall be the seventh catastrophe bond sponsored by American Family that we have now listed within the Artemis Deal Directory and the fifth within the 4 Lakes Re series from the corporate, having sponsored an issuance under this name every 12 months since 2020.

Now, we’re told that like most other cat bonds available in the market this quarter, AmFam is now trying to upsize its latest, with a goal of $250 million of reinsurance now set.

At the identical time, we’re told the value guidance for the 2 tranches of notes on offer has been lowered, again like almost every cat bond recently issued.

With the goal now lifted to $250 million, if successfully issued this 4 Lakes Re 2024-1 cat bond will provide AmFam with that quantity of reinsurance against losses from US named storms, earthquakes, severe thunderstorms, winter storms and wildfires, on a per-occurrence and indemnity trigger basis, running from January 2025 to the tip of December 2027.

What was targeted to be a $125 million Class A tranche of Series 2024-1 notes are actually being pitched to investors at $175 million in size, we’re told.

The Class A notes have an initial expected lack of 1.64% and were first offered to investors with spread price guidance in a variety from 5.75% to six.5%, but this has now fallen and been fixed on the lower-end of 5.75%, sources said.

What was a $50 million Class B tranche of notes are actually targeted at $75 million in size.

The Class B notes have an initial expected lack of 2.77% and were first offered with spread price guidance in a variety from 8.5% to 9.25%, but here too the spread has now been fixed on the low-end of 8.5%.

While these sizes and costs aren’t yet finalised or confirmed, we’re told there’s probability that is now where the deal shall be finalised, when it gets priced next week.

So, once more, this looks like a really strong result for one more cat bond sponsor, because the catastrophe bond market continues to reveal value and competitive pricing, in addition to ample capital being available to support sponsors reinsurance needs.

You possibly can read all about this latest 4 Lakes Re Ltd. (Series 2024-1) catastrophe bond from American Family within the Artemis Deal Directory.