Liberty Mutual raises Mystic Re IV industry-loss cat bond target to $300m

Insurer Liberty Mutual has raised its target size for its new Mystic Re IV Ltd. (Series 2024-1) industry-loss triggered catastrophe bond, with now $300 million of reinsurance sought from the issuance.

As we reported back on November 21st, Liberty Mutual is seeking the ninth ninth catastrophe bond in the Mystic Re series and its first to feature an industry-loss trigger since 2020.

When this deal was launched to cat bond investors, it saw Liberty Mutual targeting $250 million of catastrophe retrocessional reinsurance protection to cover its peak peril exposures, from capital market investors.

Now, we’re told the size guidance has been increased to $300 million, while at the same time this new cat bond looks like it will price at the low-end of initial spread guidance or better for Liberty Mutual.

View details of every catastrophe bond sponsored by Liberty Mutual in our Deal Directory, where you can filter the results by trigger type and other features.

This Mystic Re IV Ltd. Series 2024-1 cat bond now sees $300 million Class A notes offered, to provide Liberty Mutual with collateralized reinsurance protection on a per-occurrence and weighted industry loss trigger basis across a three calendar year term, from January 1st 2024, covering losses from named storms and earthquakes affecting parts of the US, Canada and the Caribbean.

The now $300 million of Series 2024-1 Class A notes feature, an initial modelled expected loss of 5.03% and were first offered to cat bond investors with price guidance in a range from 12.25% to 13%.

We’re now told that spread guidance has been lowered to 12% to 12.25%, suggesting this new Mystic Re IV cat bond will price at the bottom end of initial guidance or better for Liberty Mutual.

Which is another strong result, showing more retro reinsurance protection than originally targeted is likely to be secured, at better than anticipated pricing.

You can read all about this Mystic Re IV Ltd. (Series 2024-1) catastrophe bond from Liberty Mutual and every other cat bond issued in the Artemis Deal Directory.