NN Group, or Nationale-Nederlanden, saw the price guidance of its new Orange Capital Re DAC (Series 2023-1) Catastrophe bond issuance is approaching the upper end of initial forecasts.
At the same time, we are told that the target size of Orange Capital Re’s catalytic bond issue remains at the initial level of €75 million.
NN Group returned to the cat bond market in late October, seeking €75 million or more in guaranteed reinsurance from capital markets to cover losses linked to European natural perils.
This is the insurer’s second cat bond, with NN Group first entering the catastrophe bond market in 2021, securing €75 million in guaranteed European reinsurance against windstorms and severe thunderstorms with a first launch. Orange Capital Re DAC 2021-1 emission.
With this second cat bond of Orange Capital Re 2023-1, NN Group seeks to obtain 75 million euros or more in catastrophe reinsurance to cover the risks of windstorms and severe thunderstorms in Belgium and the Netherlands only , on a compensation basis and per event over a period of three years. mandate, from the beginning of 2024 to the end of 2026.
The further €75 million tranche of Series 2023-1 Class A notes carries an expected initial loss of 3.42% and was initially offered to catalytic bond investors with spread price forecasts of between 6 .75% and 7.5%.
We are now told that the spread forecasts have been reduced and raised towards the upper end of this target range, with the notes being offered between 7.25% and 7.5%.
Which is another indication of how European catastrophe reinsurance renewals may pan out at the end of the year, given that a number of catastrophe bond and ILS transactions have now been priced au- above the initial midpoint of forecasts to cover European property catastrophe risks in recent weeks. to understand.