Slide Insurance Company has increased its target for the new Purple Re Ltd. (Series 2026-1) catastrophe bond transaction, with the indicative size raised by roughly 28% to seek $320 million in multi-year collateralized named storm reinsurance, Artemis can report.
You can read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.
Initially Slide was seeking $250 million in reinsurance through its latest cat bond, but we’re now told that the insurer’s ambitions have been raised, with the company now looking to secure $320 million of fully-collateralized reinsurance for its latest issuance.
At the same time, sources have informed us that the price guidance for the risk interest spread to be paid to investors has been updated for the cat bond notes on offer, which are now being offered at a reduced range compared to their initial guidance.
As we explained in a previous article, $200 million of limit from Slide’s Purple Re Ltd. (Series 2023-1) and Purple Re Ltd. (Series 2023-2) cat bonds is set to mature before the 2026 hurricane season begins, so this new Series 2026-1 issuance looks targeted to more than replace that.
So, with this new Purple Re Series 2026-1 catastrophe bond, Slide is now targeting up to $320 million of fully-collateralized reinsurance for the company, through a single tranche of notes to be issued by Bermuda based special purpose insurer (SPI) Purple Re Ltd.
The beneficiaries of the reinsurance will be both Slide Insurance Company and its Slide Specialty Insurance Company subsidiary, the underwriting entity previously known as Pawtucket.
The now targeted $320 million of Series 2026-1 cat bond notes on offer will provide Slide with fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis, across the states of Florida, South Carolina, Rhode Island, New Jersey and New York, while the notes are largely exposed on an expected loss basis to major hurricanes in Florida.
The term of coverage will run three annual risk periods from June 1st, with maturity scheduled for early June 2029.
What was initially a $250 million tranche of Class A notes are now offered at $320 million in size.
The Class A notes will have an initial attachment point at $1.332 billion and an initial exhaustion point at $1.652 billion, giving them an initial attachment probability of 1.69%, and an initial base expected loss of 1.51%.
The notes were first offered to cat bond investors with price guidance for a risk interest spread of between 6.75% and 7.5% to be paid, but that guidance range has now been reduced to between 6.5% and 7.0%, we are told.
As a result, it seems Slide could secure its latest catastrophe bond at a size 28% larger than the initial target, with pricing either in the lower-end of initial guidance, or even below.
You can read all about this new Purple Re Ltd. (Series 2026-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
