SafePoint Insurance Company has raised the goal size for its latest catastrophe bond issuance, with now between $150 million and $200 million of reinsurance protection sought from capital market investors through the Nature Coast Re Ltd. (Series 2025-1) deal, Artemis can report.
It means this recent Nature Coast Re cat bond could develop into the equal largest ever sponsored by insurer SafePoint, if the upper-end of that size goal range for the issuance is achieved.
Once accomplished, this will likely be SafePoint’s seventh catastrophe bond issuance and its third under this Nature Coast Re program.
Nevertheless, we have now eight from the insurer listed in our Deal Directory, as a 2019 cat bond was not issued as traditional reinsurance was seen as cheaper on the time.
With the scale goal now increased, it appears SafePoint is one other sponsor seeking to capitalise on strong investor demand for catastrophe bonds and robust deal execution available in the market.
In addition to increasing the goal size, we’re also told that the value guidance for the notes offered has been narrowed inside the the initially marketed range.
SafePoint got here back to the cat bond market early in December with a $100 million goal size for this recent Nature Coast Re 2025-1 cat bond.
It’s the primary time the corporate has looked to sponsor a catastrophe bond with an industry-loss index trigger, because it seeks multi-year collateralized reinsurance protection for the named storm peril across the states of Florida, Louisiana, Alabama, Mississippi, and Texas.
The notes may also provide reinsurance to cover business underwritten by SafePoint Insurance Company itself and its reciprocal exchanges, the solely Louisiana focused entity Cajun Underwriters Reciprocal Exchange, and the Florida homeowner and business owner focused Manatee Insurance Exchange.
With the updated size goal in mind, Nature Coast Re Ltd. is now seeking to issue between $150 million and $200 million of Series 2025-1 notes, to offer a roughly 4 yr source of fully-collateralized reinsurance protection against named storm losses within the covered states, on a state-weighted, annual aggregate and industry loss index trigger basis we’re told, running from settlement in early 2025 through to the top of 2028.
The Nature Coast Re 2025-1 Class A notes include an initial expected lack of 2.92% and were initially offered to cat bond investors with spread price guidance in a spread from 9.5% to 10.25%, but we’re now told that the guidance has narrowed to a recent range of 9.75% to 10%.
Because of this, it appears SafePoint is about to finalise this recent catastrophe bond not less than 50% greater than its initial goal and with pricing somewhere across the middle of the initial guidance, again showing investor appetite for aggregate coverage cat bond notes persists.
You’ll be able to read all about this recent Nature Coast Re Ltd. (Series 2025-1) catastrophe bond from Safepoint in addition to details on every other cat bond ever issued within the extensive Artemis Deal Directory.