PROGRESSIVE’S ARX CAT BOND MAY TRIPLE TO 700M

The Bonanza Re Ltd (Series 2020-2) catastrophe bond sponsored by the ARX Holding unit of US property/casualty group Progressive has dropped one of its initial three tranches but its overall size could triple to $300m, Artemis.bm has reported. A tranche of Class A notes will provide $200m in collateralised cover against losses from US named storms from June 2021 through December 2024. A tranche of Class B notes will provide up to $100m in protection against losses from US named storms, severe thunderstorms, winter storms, wildfires and earthquakes for the 2021 calendar year. Meanwhile, Bermudian re/insurer Arch Capital Group is returning to the capital market with the Bellemeade Re 2020-4 mortgage insurance-linked securities issuance to secure $337m in mortgage reinsurance for its United Guaranty Residential Insurance and Arch Mortgage Insurance units. Once the three-tranche deal completes, Arch will have secured around $1.8bn in mortgage reinsurance through four transactions in 2020.