Swiss Re raises the target for its Matterhorn Re 2025-1 catastrophe bond to a maximum of $225 million.

Swiss Re is now aiming to secure up to $225 million in retrocessional reinsurance protection for North American earthquakes and named storms through its new Matterhorn Re Ltd. (Series 2025-1) catastrophe bond, according to Artemis.

Initially targeting at least $150 million in protection, Swiss Re has raised the target to between $175 million and $225 million, driven by strong investor demand. The catastrophe bond, the twelfth issuance under Swiss Re’s Matterhorn Re program, will consist of two tranches of notes with adjusted pricing guidance and increased size targets.

The Class A tranche, initially planned at $75 million, is now expected to reach up to $100 million. This tranche will provide Swiss Re with aggregate retrocessional protection against losses from earthquakes in the U.S., D.C., and Canada, as well as named storms affecting northeastern U.S. states and Canada. The Class A notes have an expected loss of 3.87% and revised pricing guidance between 7% and 7.5%, down from the initial range of 7.5% to 8.25%.

Similarly, the Class B tranche, initially set at $75 million, is now expected to range between $100 million and $125 million. These notes will cover U.S., D.C., and Canada earthquakes, along with named storms across all 50 U.S. states, D.C., and Canada. With an expected loss of 6%, the pricing guidance for Class B notes has dropped from the initial range of 12.75%–13.75% to 12.25%–12.75%.

Swiss Re is likely to benefit from the robust demand for this catastrophe bond, with the deal expected to surpass the initial size target and pricing projected to settle at the lower end of the initial range or below.