The size of the Acorn Re Ltd. series 2018-1 parametric earthquake catastrophe bond is set to increase to $400 million from $300 million, Artemis reported.
Sources told Artemis that the market's appetite for the bond has been strong as investors welcome the renewal deal. The bond provides workers compensation protection for the Kaiser Permanente health group and other reinsureds of Hannover Re.
Pricing lowered to the bottom of the coupon guidance range of 2.75% to 3.25%, the insurance-linked securities blog reported.
Hannover Re is the ceding reinsurer. Oak Tree Assurance Ltd., the Vermont domiciled workers compensation captive owned by the Kaiser Permanente group of health plan companies, is the ceding insurer.