RenaissanceRe has secured a full upsizing of its Mona Lisa Re Ltd. Series 2026-1 catastrophe bond, raising $400 million of multi‑peril retrocessional reinsurance from the capital markets, according to Artemis. The transaction, which represents the sponsor’s seventh Mona Lisa Re issuance, was increased from an initial $200 million target after what Artemis describes as strong investor demand and favourable market conditions. [1][2]
The deal is split into two fully collateralised tranches: a five‑year Class A tranche providing $200 million of aggregate annual retrocession and a four‑year Class B tranche providing a further $200 million. Both tranches cover industry loss triggers for named storm and earthquake events affecting the U.S., Puerto Rico, the U.S. Virgin Islands and Washington, D.C., with additional protection for Canadian earthquakes. Artemis reports that the sizes were finalised at the top end of revised targets and priced at the lower end of guidance. [1][2][3]
Pricing details indicate the Class A notes carry an initial expected loss of 2.82% and were marketed with guidance that tightened from 5.75%–6.5% to 5.5%–5.75%; Artemis says the tranche ultimately priced at the low end, at a spread of 5.5%. The Class B notes, with an initial expected loss of 6.74%, were revised from guidance of 12.25%–13% down to around 12%–12.25% and are reported to have priced at approximately 12%. Those terms, again reported by Artemis, point to relatively attractive market pricing for RenaissanceRe and its partner capital vehicle DaVinci Re. [1][2][3]
The upsized Series 2026‑1 now stands as one of RenaissanceRe’s largest Mona Lisa structures to date, eclipsing earlier transactions such as the $185 million Mona Lisa Re 2023‑1 note, which matures in early January 2026. The enlarged cat bond programme means RenaissanceRe will enter the coming year with greater cat‑bond‑supplied retrocessional protection on its books. Artemis’ Deal Directory holds further transaction detail. [1][2]
The issuance comes as RenaissanceRe has been active elsewhere in cat‑bond investing and product development. In March 2025 the company launched a new Medici UCITS property catastrophe bond fund domiciled in Ireland, aiming to give European and global investors access to its catastrophe bond strategy; the fund launched with $340 million of capital including a $140 million co‑investment from RenaissanceRe, according to a company statement reported by Business Wire. That effort signals RenRe’s dual role as both sponsor and manager within insurance‑linked securities markets. [5]
The market context for the upsizing is complicated by recent underwriting volatility at RenaissanceRe. Company results reported in Q1 2025 show a large net loss, driven chiefly by California wildfires, with industry reporting of the period indicating net claims and claims expenses in excess of $1.7 billion and a consolidated combined ratio that deteriorated materially year‑on‑year. Analysts and market commentary portray such retrocession and cat‑bond placements as part of a broader risk‑transfer and capital‑management response to elevated catastrophe losses. [6][7]
Taken together, the Series 2026‑1 transaction reflects a cat‑bond market willing to provide substantial, multi‑year protection at compressed spreads, while RenaissanceRe continues to expand both its capital‑markets offerings and its use of third‑party capital vehicles to manage peak catastrophe exposure. Artemis’ reporting frames the deal as a timely reinstatement of market capacity for the sponsor and its partner. [1][2][5][6]
📌 Reference Map:
##Reference Map:
- [1] (Artemis) - Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 7
- [2] (Artemis summary) - Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 7
- [3] (Artemis earlier report) - Paragraph 2, Paragraph 3
- [5] (Business Wire) - Paragraph 5, Paragraph 7
- [6] (Insurance Business) - Paragraph 6, Paragraph 7
- [7] (Reinsurance News) - Paragraph 6
Source: Noah Wire Services