Farmers Insurance Exchange and its subsidiaries, operating under the Farmers Insurance Group name, closed a $400 mn catastrophe bond that adds indemnity-based protection alongside its traditional catastrophe reinsurance.
The deal feeds directly into the group’s broader risk financing setup, rather than sitting as a standalone capital markets play.
Swiss Re Capital Markets and Howden Capital Markets & Advisory acted as joint structuring agents and joint bookrunners. The transaction ran through Topanga Re, Farmers’ dedicated catastrophe bond vehicle, Beinsure noted.
Topanga Re issued two tranches. The offering includes $300 mn of Series 2025-1 Class A Notes and $100 mn of Series 2025-1 Class B Notes.
Both tranches run for four years and apply a per-occurrence indemnity trigger, keeping the structure close to Farmers’ underlying loss experience.
Coverage spans US named storms, earthquakes, severe weather, and fire. The scope gives Farmers a wide protection band across peak and non-peak risks, which matters as volatility keeps creeping into multiple peril zones.
Thomas Noh, CFO of Farmers Insurance Exchange, said the group welcomed access to capital markets through the issuance, pointing to diversification of capital sources and tighter risk control.
He added that locking in multi-year collateralised capacity through Topanga Re sits high on Farmers’ risk management agenda.
Swiss Re Capital Markets CEO Jean-Louis Monnier said the transaction shows how insurance-linked securities can complement traditional reinsurance, including top and sideways protection.
He pointed to investor acceptance of the drop-down mechanic as a sign of growing market maturity and a closer fit between ILS structures and reinsurance programs.
Acceptance of this drop-down mechanic demonstrates investors’ increased sophistication and willingness to support clients like Farmers, allowing the ILS market to better align with traditional reinsurance.
Jean-Louis Monnier, Swiss Re Capital Markets CEO
Philipp Kusche, co-head of global ILS and chairman of HCMA Europe, said HCMA supported Farmers on its second and largest catastrophe bond to date through Topanga Re.
The deal drew strong demand from a broad investor base, priced efficiently, and delivered protection across multiple perils. He framed the issuance as another step in Farmers’ steady presence as a repeat sponsor in the catastrophe bond market.
