MAPFRE RE has returned to the catastrophe bond market by sponsoring a new €125 million, three-year issuance specifically designed to protect its European risk portfolio against extreme wind events, which constitute the firm’s main catastrophic exposure in the region.
This 2025 transaction, done through the Irish-based SPV, Recoletos Re DAC, follows MAPFRE RE’s inaugural catastrophe bond purchase in 2024, is structured to deliver protection on an annual aggregate basis, with the trigger based on losses as reported by PERILS AG.
You can read more about this catastrophe bond, and all others, in the comprehensive Deal Directory of our sister publication, Artemis.
According to MAPFRE RE, the issuance was “very well” received by the capital markets, allowing the final amount to increase from the initially planned €100 million to €125 million, as well as achieving a final price below the initial guidance given the strong investor demand.
AON Securities acted as the structuring and placement agent for the transaction.
Miguel Rosa, CEO of MAPFRE RE, commented, “We are very pleased with this new protection. The use of catastrophe bonds as part of our retrocession purchase allows us to better protect MAPFRE RE in Europe and diversify our reinsurance sources.
“This strengthens our position in the global market whilst demonstrating the confidence that both the traditional and catastrophe bond markets have in MAPFRE RE’s underwriting quality.”
In related news, data from Artemis’ catastrophe bonds and ILS chart indicates that new 144A catastrophe bond issuance for 2025 has officially exceeded the $20 billion mark.
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