The size of Axa XL-sponsored Galileo Re Ltd. series 2019-1 catastrophe bond is expected to settle at $475 million, significantly lower than the initial target of $575 million, Artemis reported.

The initial offering in November included five tranches of notes. However, the company recently decreased the number of tranches to three — classes A, C and D — which cover $300 million layers attaching at $1.2 billion, $1.8 billion and $2.1 billion of losses, respectively.

The class A notes will provide $75 million of reinsurance protection to Axa XL companies with a base initial expected loss of 7.74%, while the class C layer will now offer $250 million of reinsurance protection with an initial expected loss of 3.52%. The class D notes settled at $150 million of reinsurance protection with an initial expected loss of 2.54%, according to the report.

The covered perils consist of U.S., Puerto Rico and Virgin Islands named storms; U.S. earthquakes and severe thunderstorms; Canada earthquakes; European windstorms; and Australian tropical cyclones and earthquake risks, Artemis noted.

The issuance will reportedly be completed in the week of Dec. 9.