For its first ever catastrophe bond, a special purpose insurer (SPI) named Titania Re Ltd. has been registered in Bermuda.

Titania Re Ltd. will look to issue a single $150 million tranche of Series 2021-1 Class A notes, that will be sold to investors and the proceeds used to collateralize underlying aggregate reinsurance agreements between the SPI and cedent Syndicate 1910.

The notes will provide Syndicate 1910 with a multi-year source of reinsurance to cover certain losses from U.S., Puerto Rico, U.S. Virgin Islands, D.C. and Canada named storms and earthquakes.

The coverage will run across a three year period, to June 2024, we understand and is structured using an industry loss trigger providing annual aggregate protection, attaching at an index loss level of $1 billion and covering up to $1.33 billion, after a $45 million per-event deductible, we understand.

We’re told that the $150 million of Series 2021-1 Class A notes will have an initial expected loss of 1.98% and have been offered to investors with coupon price guidance in a range from 5% to 5.5%.

Another notable fact with this transaction is that TigerRisk Capital Markets & Advisory is the sole structuring agent for the Titania Re catastrophe bond, which we believe is the first time the broker’s capital markets team has taken that role on a 144A cat bond transaction.

Update 1:

The price guidance for the Class A notes has been lowered to below the initial range, with the latest offered being 4.5% to 5%, representing a roughly 10% drop in price from the mid-point of the initial range to this updated spread.

Update 2:

The pricing was finalised with a coupon of 4.5%, so the low-end of the reduced guidance range, representing a roughly 14% drop on price from the initial mid-point.