American Coastal Insurance Company is back within the catastrophe bond market and in search of $100 million or more in Florida named storm reinsurance protection from the issuance of a latest Armor Re II Ltd. (Series 2024-2) transaction, Artemis has learned.

This can be the second Armor Re II catastrophe bond from the insurer of 2024, having sponsored a $200 million Armor Re II Ltd. (Series 2024-1) cat bond issuance back in April.

American Coastal Insurance Company (AmCoastal Insurance) is not any stranger to the cat bond market, with this latest issuance set to be the seventh to take the Armor Re name, although a number where sponsored by United and Interboro entities, in addition to AmCoastal Insurance.

See details of each catastrophe bond transaction within the Artemis Deal Directory.

For this issuance, AmCoastal is again using its Bermuda-based special purpose insurer Armor Re II Ltd. and the vehicle will seek to issue a single tranche of Series 2024-2 Class A notes, that can be sold to investors and the proceeds used to collateralize a reinsurance agreement between the SPI and American Coastal Insurance Company.

These Armor Re II 2024-2 Class A notes will provide American Coastal with a just over three-year source of Florida named storm reinsurance protection, running to the top of December 2027, we’re told

The notes have been structured to guard AmCoastal with Florida named storm and hurricane reinsurance on an indemnity trigger and per-occurrence basis over that risk period.

Armor Re II is trying to issue $100 million or more in Class A notes, with their coverage set to connect at $50 million of losses to AmCoastal Insurance and exhaust their reinsurance coverage at $250 million, which implies there’s ample room for this latest cat bond to upsize for the insurer, should the cat bond investor community be receptive to it.

The $100 million of Series 2024-2 Class A notes that Armor Re II Ltd. will issue include an initial attachment probability of 0.75%, an initial expected lack of 0.59% and are being offered to cat bond investors with spread price guidance in a variety from 9% to 10%, sources said.

While the attachment point looks low at $50 million, the Series 2024-2 notes sit above stated reinsurance and the FHCF participation, which implies that the effective attachment point looks more like a ground-up loss of virtually $1.13 billion to AmCoastal.

Because of this, these are relatively distant by way of risk and where they sit within the AmCoastal Insurance reinsurance tower, we’re told.

It’s an unusual time of 12 months to bring a Florida hurricane cat bond to market, but given the strong investor appetite that has been tightening spreads across recent latest issues this might play in AmCoastal’s favour.

So it would be interesting to see what the reception is wish to this unseasonal Florida wind cat bond issuance, as if execution is robust it could send a signal to other firms in search of Florida focused reinsurance that the catastrophe bond market is open and capable of absorb that risk at attractive pricing right now.

We also recently reported that American Coastal’s reported loss estimate for recent hurricane Milton was not sufficient to hassle its in-force cat bond.

You possibly can read all about this latest Armor Re II Ltd. (Series 2024-2) catastrophe bond transaction and each other cat bond ever issued in our Artemis Deal Directory.