Nationwide Sponsored Aquila Re I Ltd. (Series 2023-1) Notes

Transaction Overview

On May 23, 2023, Nationwide Mutual Insurance Company (“Nationwide”) closed their ninth 144A Cat Bond issuance and first out of the Aquila program

Issuance through Aquila Re I Ltd. Series 2023-1 Class A, Class B, and Class C Notes (“Notes”)

  • Total transaction size doubled from the initial target of $150mm to $300mm and all Notes priced below initial guidance

The $50mm 2023-1 Class A, $125mm Class B, and $125mm Class C Notes will provide per-occurrence, indemnity-triggered coverage

  • Risk Period: 3 years
  • Loss Event / Covered Area: US named storm, earthquake, severe thunderstorm, winter storm, wildfire, meteorite impact, volcanic eruption
  • Expected Loss1:
    • Class A: 0.46%
    • Class B: 1.30%
    • Class C: 1.94%

Initial Risk Interest Spread tightened from the low end of initial guidance by 50 basis points across all classes of 2023-1 Notes

  • Class A Initial Price Guidance: 5.75% – 6.50% => Final Pricing: 5.25%
  • Class B Initial Price Guidance: 8.00% – 8.75% => Final Pricing: 7.50%
  • Class C Initial Price Guidance: 9.75% – 10.50% => Final Pricing: 9.25%

Howden Tiger Capital Markets & Advisory Role

HTCMA acted as Joint Bookrunner

  • Advised in all aspects of the placement of the Cat Bond including, but not limited to:
    • Transaction structure and associated features, mechanics, benefits and considerations
    • Global investor outreach including investors in London, New York, Bermuda, and Zurich
    • Investor discussions and overall transaction marketing processes
    • Market conditions, pricing levels and market developments

(1) Warm Sea Surface Temperature metrics as modeled by AIR / Verisk.