Mapfre S A : Re completes a new catastrophe bond of USD 200 million to enhance U.S. hurricane protection

About this update from Mapfre Sa

Mapfre Re, the reinsurance arm of the Mapfre Group, has successfully completed a USD 200 million catastrophe bond transaction providing U.S. named storm coverage through its special purpose vehicle, Recoletos Re DAC. The bond provides indemnity-based, per-occurrence coverage with a three-year risk period extending through the end of June 2029. The transaction represents a significant milestone, introducing for the first time indemnity-based, per-occurrence U.S. named storm coverage fully integrated into Mapfre Re's corporate reinsurance purchasing program for the Mapfre Group. This approach allows for closer alignment between reinsurance protection and the Group's underlying risk exposure, improving the effectiveness of risk transfer to the capital markets. GC Securities acted as sole structuring agent and also joint bookrunner, alongside Aon Securities. With this transaction, Mapfre Re continues to reinforce the use of alternative capital as a structural pillar of its retrocession and reinsurance purchasing strategy, enhancing the Group's resilience through diversified sources of capacity that complement traditional products. "This transaction underscores our disciplined approach to risk management and our continued commitment to securing robust, well-aligned protection for the Mapfre Group," said Miguel Rosa, CEO of Mapfre Re. "By further integrating indemnity-based catastrophe bond coverage into our reinsurance corporate program, we are supporting the Group's resilience while making strategic and diversified use of capital markets capacity." This latest closing reaffirms Mapfre Re's commitment to advanced and rigorous risk management, enhancing its protection against U.S. hurricane risk and further deepening the integration of capital markets within its global reinsurance strategy.

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