Allstate lifts target for new Sanders Re 2024-1 cat bond to $300m

US primary insurer Allstate is now seeking to upsize its latest catastrophe bond, with the target for the Sanders Re III Ltd. (Series 2024-1) issuance rising from the initial $200 million, to now a goal of securing between $300 million and $350 million in reinsurance from the capital markets with this deal.

Allstate returned to the catastrophe bond market with what will become the eighteenth catastrophe bond issuance that we have listed in our extensive Deal Directory to be sponsored by the insurer.

Allstate returned to the cat bond market in December to use its Sanders Re III Ltd. vehicle for issuance of a single tranche of Series 2024-1 cat bond notes, targeted to provide at least $200 million in fully-collateralized reinsurance.

The reinsurance will cover Allstate for certain personal lines property and auto losses from multiple US perils, on a per-occurrence and indemnity trigger basis over a more than four year term, from the date of issuance running to maturity at the end of March 2028.

We’re now told that the target size of this issuance has increased considerably, with Allstate now aiming to secure between $300 million and $350 million of reinsurance from this Sanders Re III 2024-1 cat bond issuance.

At the same time, we understand Allstate is targeting keen price execution for its latest catastrophe bond deal.

Sources told us that the Sanders Re III 2024-1 Class A cat bond notes, that come with an initial expected loss of 0.8884% and were initially offered to investors with price guidance in a range from 5.75% to 6.5%, are now being offered with price guidance fixed at the bottom-end of that range, to pay investors a spread of 5.75%.