December 5, 2023

Global insurance and reinsurance group AXA has increased its interest in European storm reinsurance protection with a new Eiffel Re Ltd. (Series 2023-1) catastrophe bond offering, with the deal now targeting a size of up to €150 million.

Eiffel Re Cat Bond AXAAXA was seeking at least €125 million in European storm reinsurance protection when it launched the Eiffel Re 2023-1 transaction earlier this month, the first catastrophe bond sponsored by an AXA entity since 2019.

Eiffel Re Ltd., actually the previously used, now renamed Galilei Re SPI, is looking to issue a single tranche of 2023-1 series catastrophe bond notes in the size of €125 million.

But we are now told that the target has been dropped and protections of up to 150 million euros are now sought.

The notes will provide AXA and its affiliates with reinsurance and retrocession protection against group-wide European storm losses for a period of approximately three and a half years, based on industry loss triggers and the occurrence of each incident.

The 2023-1 Series A notes to be issued by Eiffel Re Ltd. are currently up to 150 million euros, with an initial expected loss of 0.45% and for the first time are offering investors a spread guidance of 3.25% to 3.75%.

We are now told that the price guidance has been revised, narrowing to the lower end of the range, 3.25% to 3.5%.

As a result, AXA looks poised to acquire its new cat bond at a slightly larger size, priced at the midpoint of initial guidance or lower.

You can read all about AXA’s new Eiffel Re Ltd. (Series 2023-1) catastrophe bond and every deal issued since 1996 in the Artemis Deal Directory.

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