The Texas Windstorm Insurance Association (TWIA) has now secured double its initial target for reinsurance from its new 144a Alamo Re Ltd. (Series 2023-1) catastrophe bond, with the issuance having its pricing fixed at $500 million in size, with a spread around 7% lower than the mid-point of initial guidance.
It’s a strong result in the catastrophe bond market for the residual market property insurer for the state of Texas, which had previously been concerned about the pricing available in the cat bond market, but in the end has opted to upsize this latest Alamo Re issuance by 100%.
TWIA returned to the catastrophe bond market around the middle of March, with a dual-series offering of both 144a notes and Section 4(A)2 notes that were pitched as an exchange opportunity for investors in a previous Alamo cat bond deal.
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