Liberty Mutual Sponsored Mystic Re IV Ltd. (Series 2026-1) Notes
Transaction Overview
On December 18, 2025, Liberty Mutual sponsored a 144A Cat Bond through Mystic Re IV Ltd.
- The 2026-1 Notes represent the sixth 144A Cat Bond issuance under the Mystic Re IV Ltd. program and the eleventh 144A Cat Bond issuance by Liberty Mutual
- Both tranches achieved efficient execution compared recent Q4 2025 indemnity named storm transactions
The 2026-1 Notes received strong investor support; upsizing from the original target of $100mm to $150mm
- Class A notes final size: $50mm
- Class B notes final size: $100mm
The Class A and Class B notes offer per occurrence, indemnity-based coverage for named storm, earthquake, severe weather and fire risks across the U.S., Canada and the Caribbean
- Coverage expanded beyond Named Storm and Earthquake from prior per-occurrence Mystic issuances to include Severe Weather and Fire reflecting HCMA’s ability to broaden protection for Liberty Mutual
The transaction incorporates a state-level post-event assessment adjustment that enhances loss accuracy and reduces basis on risk across Liberty Mutual’s operating footprint
The issuance consisted of Class A and Class B notes of differing risk profiles
- Class A Expected loss (AIR; WSST): 1.52%
- Class B Expected loss (AIR; WSST): 3.92%
Howden Capital Markets & Advisory Role
Howden Capital Markets & Advisory (“HCMA”) acted as Joint Structuring Agent, Joint Bookrunner and Joint Initial Purchaser
- Advised on strategy and of placement in parallel with Liberty Mutual's traditional reinsurance placement
- Identified a variety of institutional investors interested in supporting Liberty Mutual through this transaction
- Key transaction steps led by HCMA include, but are not limited to:
- Provided valuable advice on selecting and structuring the subject portfolio • Finalized the investor presentation, risk analysis results, and offering documents
- Selected, introduced, and arranged meetings with key participating investors for an Investor Roadshow • Offered key insight around key transaction terms and conditions
