Liberty Mutual has sponsored a $150 mn catastrophe bond that provides per-occurrence, indemnity-based protection for named storm, earthquake, severe weather, and fire losses across the U.S., Canada, and the Caribbean. The deal adds fresh capacity while widening the scope of covered perils.
The 2026-1 notes were issued through Mystic Re IV Ltd. and drew enough investor demand to lift the transaction from an initial $100 mn target to $150 mn.
According to Howden Capital Markets & Advisory, the structure includes $50 mn of Class A notes and $100 mn of Class B notes.
HCMA served as joint structuring agent, joint bookrunner, and joint initial purchaser on the transaction. The bond closed recently, a Liberty Mutual spokesperson confirmed.
The new issuance builds on last year’s placement. In 2025, Liberty Mutual completed a $325 mn catastrophe bond under its 2025-1 series, which still has two of its three-year term remaining. The 2026 deal doesn’t replace that protection. It layers on top.
Coverage terms have shifted. Earlier Mystic Re per-occurrence bonds focused on named storm and earthquake risk.
The 2026 series expands that menu to include severe weather and fire, reflecting where loss activity has been clustering.
According to HCMA, the structure also features a state-level post-event assessment adjustment designed to improve loss accuracy and cut basis risk across Liberty Mutual’s operating footprint.
The transaction lands amid a busy stretch for the insurance-linked securities market.
Earlier, Swiss Re Capital Markets completed a $400 mn catastrophe bond for Farmers Insurance Group, covering U.S. named storm, earthquake, severe weather, and fire exposures.
That Farmers deal involved Series 2025-1 principal-at-risk variable rate notes issued by Topanga Re Ltd., a Bermuda special-purpose vehicle.
Swiss Re said it marked the second catastrophe bond issuance for the group. Farmers noted separately that the bond integrates directly into its traditional catastrophe reinsurance program.
According to Beinsure analysts, the Liberty Mutual and Farmers transactions underscore how large carriers are using cat bonds not just to add limit, but to fine-tune peril mix and basis risk as secondary perils keep eating into results. The capital is there. Structures are getting sharper.
