Meritage Re, a Bermuda-domiciled special purpose insurer set up as a catastrophe bond (“cat bond”) issuing vehicle, has increased the target size of its Series 2026-1 catastrophe bond, now seeking up to $250 mn of multi-year U.S. named storm reinsurance for GeoVera and SafePort Insurance Company, according to Artemis.
The issuance traces back to the SageSure group. Earlier this year, SageSure invested in GeoVera Nova Holdings, the parent overseeing the three ceding entities tied to the Meritage Re transaction.
That relationship set the stage for this capital markets placement.
When the deal surfaced earlier in December, Meritage Re 2026-1 was targeting $200mn of U.S. named storm protection. The cover was structured to benefit GeoVera Insurance Company, GeoVera Specialty Insurance Services, and SafePort.
Investor appetite appears strong enough that the sponsor has now lifted the ceiling by another $50 mn.
At the same time, pricing has moved. Initial guidance for the Series 2026-1 Class A notes pointed to a risk interest spread of 6-6.5%. That range has been cut.
Revised guidance now sits at 5.5-6%, reflecting tighter cedent targets and continued execution strength in this slice of the cat bond market.
Under the updated structure, Meritage Re is offering up to $250 mn of Class A notes. The bonds provide indemnity-based, per-occurrence protection against qualifying U.S. named storm losses.
The term runs for three years, starting in early March 2026. The initial base expected loss stands at 1.89%.
Lower spreads paired with a higher limit send a clear signal. Sponsors with clean risk profiles and straightforward structures are still finding receptive capital markets.
According to Beinsure, transactions like this suggest that, even as rates soften, demand for U.S. wind exposure with transparent triggers hasn’t thinned much. The pricing tells the story.
