Tech-enabled property insurance company Slide Insurance remains on-track to secure what will be its largest catastrophe bond yet, still aiming for $250 million of reinsurance through the Purple Re Ltd. (Series 2025-1) transaction, while the price guidance has been updated in the lower-halves of the initially targeted ranges, Artemis has learned.
The company has sponsored a new cat bond each year since 2023, as it builds out capital markets support within its catastrophe reinsurance tower.
In a first-update roughly one week ago some of the risk metrics associated with this new cat bond for Slide were updated, which you can read about in our Deal Directory entry here.
Now, we’ve learned from sources that the size target remains at $250 million for this latest cat bond from Slide, while the price guidance has been updated within the lower-halves of the initial ranges for both of the tranches of notes on offer.
The targeted $250 million of reinsurance protection from this new Purple Re 2025-1 cat bond will benefit both Slide Insurance Company and its Pawtucket Insurance Company subsidiary with fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis, across the states of Florida and South Carolina to begin, over three annual risk periods from June 1st, so with maturity scheduled for early June 2028.
The still $125 million Series 2025-1 Class A tranche of notes have an initial base expected loss of 1.04% and were initially offered to cat bond investors with price guidance in a range from 7% to 7.75%, but that has now been updated to guidance for a spread of 7.25%, we are told.
The still also $125 million tranche of Class B Series 2025-1 notes have an initial base expected loss of 1.24% and were initially offered to cat bond investors with price guidance in a range from 7.5% to 8.25%, which has now been updated to guidance for a spread of 7.75%, we understand.
As a result, it looks like Slide could secure its largest cat bond yet priced in the lower-halves of the initial guidance ranges.
You can read all about this new Purple Re Ltd. (Series 2025-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
