Mapfre Re’s second successful sponsorship of a 144A catastrophe bond and the fact the Recoletos Re DAC (Series 2025-1) deal upsized to provide €125 million of annual aggregate European windstorm retrocession demonstrates the cat bond market’s confidence in the reinsurance company, CEO Miguel Rosa said this morning.
As we’ve been reporting, Mapfre Re has successfully priced its second 144A catastrophe bond last week, with the Recoletos Re 2025-1 cat bond growing from its initial €100 million of European windstorm protection target, to secure the company €125 million in retrocession.
A year ago, Mapfre Re secured $125 million in annual aggregate US named storm retrocession from the capital markets with its debut Recoletos Re DAC (Series 2024-1) catastrophe bond.
The return in 2025 saw the reinsurance firm looking to secure coverage for another peak peril, as it targeted European windstorm retrocession on an annual aggregate basis from the capital markets.
With the cat bond settling yesterday, Mapfre Re’s CEO Miguel Rosa has expressed his satisfaction in the execution achieved for the firm’s second cat bond sponsorship.
“We are very pleased with this new protection,” Miguel Rosa explained. “The use of catastrophe bonds as part of our retrocession purchase allows us to better protect MAPFRE RE in Europe and diversify our reinsurance sources.
“This strengthens our position in the global market whilst demonstrating the confidence that both the traditional and catastrophe bond markets have in MAPFRE RE’s underwriting quality.”
For Mapfre Re, its second cat bond had a main objective to “protect its risk portfolio in Europe against extreme wind events, the company’s main catastrophic exposure in the region,” the reinsurer explained.
With Aon Securities acting as both structuring and placement agent, Mapfre Re said the Recoletos Re 2025-1 cat bond was “very well received by the capital markets, allowing the final amount to increase from the initially planned €100 million to €125 million, as well as achieving a final price below the initial guidance given the strong investor demand.”
The company sees cat bonds as a valuable additional and complementary alternative to traditional reinsurance for its retrocession needs.
You can read all about this new Recoletos Re DAC (Series 2025-1) catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory.
