Texas Farm Bureau Sponsors $250 Million Cat Bond

Its Bermuda-based insurer Fish Pond Re Ltd. is issuing Series 2026-1 notes to reinsure named storm losses in Texas.

Updated on Nov. 2, 2026 in Insurance

Texas Farm Bureau Sponsors $250 Million Cat Bond

Texas Farm Bureau Insurance is sponsoring the Fish Pond Re Ltd. Series 2026-1 catastrophe bond, targeting $250 million of named storm reinsurance protection for Texas. The deal is intended to renew protection from the earlier Fish Pond Re 2024-1 cat bond.

Why it matters

The notes transfer a portion of hurricane and named storm risk from Texas Farm Bureau insurers to capital market investors. The four-year term is longer than the three-year debut deal, extending protection for Texas policyholders and reinsurance buyers.

The Class A notes carry initial spread guidance of 2.25% to 2.75% and the Class B notes 3% to 3.5%, based on initial attachment probabilities of 0.4% and 1.91%. Final pricing and issuance results are not yet disclosed in the extraction.

The players

Texas Farm Bureau Insurance

The insurance arm of Texas Farm Bureau, the state's largest farm organization, which provides property and casualty coverage to rural policyholders.

Fish Pond Re Ltd.

A Bermuda-based special purpose insurer used by Texas Farm Bureau Insurance to issue catastrophe bonds and transfer risk to capital markets.

The details

Fish Pond Re Ltd., a Bermuda special purpose insurer, will sell the notes to investors, and proceeds will collateralize a reinsurance agreement with Texas Farm Bureau Casualty Insurance Company and mutual insurer subsidiaries. The structure follows Texas Farm Bureau Insurance's use of the same vehicle for its earlier cat bond sponsorship.

2024: Fish Pond Re 2024-1 cat bond debuted and is nearing maturity.
End of 2030: Series 2026-1 notes are set to remain on-risk through this date.

Roadmap

This second issuance follows the 2024-1 debut from the same sponsor and Bermuda vehicle, extending the program to a four-year term versus three years. It shows Texas Farm Bureau Insurance continuing to rely on the capital markets for named storm reinsurance rather than traditional reinsurance alone.

Texas Farm Bureau policyholders are indirectly protected by reinsurance that backs their insurer's storm exposure, which can affect pricing and capacity over the coming years. Investors who buy the notes bear the risk of named storm losses in exchange for the spread payments.

The takeaway

Catastrophe bonds let regional insurers spread named storm risk beyond their own balance sheets, and the longer term of this deal signals sustained reliance on that market in Texas.