US insurance firm Progressive is targeting much more favourable price execution for its latest enterprise to the catastrophe bond market, with the spread guidance for its recent $345 million Bonanza Re Ltd. (Series 2024-1) issuance having fallen further in the most recent update, we understand.

Progressive returned to the cat bond market in late November, with what can be the eighth catastrophe bond under the Bonanza Re name.

Initially, the insurer was searching for a $225 million source of capital markets backed protection on each a aggregate and occurrence basis from its latest catastrophe bond.

We’re now told that Progressive looks set to be the most recent to learn from strong investor demand, as the corporate has now lifted the goal size of this Bonanza Re 2024-1 cat bond issuance to $345 million.

We then reported earlier this week that Progressive looks set to be the most recent cat bond sponsor to learn from strong investor demand, with the goal size of this Bonanza Re 2024-1 cat bond issuance raised to $345 million while at the identical time the value guidance fell.

Now, we’re told the scale goal stays for $345 million of multi-peril reinsurance, but for a second time the value guidance has fallen.

This Bonanza Re 2024-1 cat bond will ultimately provide its sponsor with one yr of aggregate reinsurance and three years of occurrence coverage, across the perils of named storm, earthquake (fire-following only), severe thunderstorm, winter storm, wildfire in the US.

The upsized to $70 million tranche of zero-coupon discount Class A notes will provide aggregate coverage across only a single yr through 2025, and have two sections with a shared limit, one focused on multi-peril cover and the opposite named storm only.

The Class A tranche of notes have an initial expected lack of 4.09% and were first offered to cat bond investors with price guidance of 79% to 77% of par, a rough spread equivalent of 21% to 23%, which was then reduced to a spread of 80% to 79% of par, an efficient spread equivalent of 20% to 21%, but we’re now told this has been fixed at 80% of par, so a selection equivalent of 20%.

The opposite two tranches of notes will provide Progressive with three calendar years of indemnity and per-occurrence multi-peril reinsurance protection to the tip of 2027.

The Class B tranche of notes remain at their initial $75 million in size, with an initial expected lack of 0.76%. They were at first offered with price guidance of between 4.5% and 5.25%, but that was lowered to a recent range of 4% to 4.45%, and now we’re told the guidance has fallen further to between 3.75% and 4%.

The upsized to $200 million tranche of Class C notes have an initial expected lack of 1.82%. They were first offered with spread price guidance of between 6.5% and seven.25%, which then fell to a recent range of between 6% and 6.5%, and now has been lowered further to between 5.5% and 6%.

Progressive stays on track to secure a significantly upsized and priced down slice of reinsurance from the catastrophe bond market, as the most recent sponsor to learn from the very strong execution being seen within the marketplace at the moment.

You possibly can read all about this Bonanza Re Ltd. (Series 2024-1) catastrophe bond and each other cat bond ever issued within the Artemis Deal Directory.