With Mangrove Property Insurance recently securing its debut catastrophe bond transaction, the $111 million Buttonwood Re Ltd. (Series 2026-1) issuance, Stephen Weinstein, Chief Executive Officer and Founder of the firm has highlighted how the inaugural catastrophe bond represents “an important milestone” for the company.
Initially, we first reported on April 24th that the insurer was targeting $100 million of named storm reinsurance protection with its debut cat bond.
Mangrove then raised the target size for this Buttonwood Re Series 2026-1 issuance to between $100 million and as much as $111 million of reinsurance.
On May 21st we reported that Mangrove successfully secured the upsized $111 million of reinsurance, with all four tranches of notes pricing for spreads at the bottom ends of initial guidance or lower.
This Buttonwood Re 2026-1 transaction provides Mangrove with capital markets-backed reinsurance protection on both a per-occurrence and annual aggregate basis covering losses arising from named storms across Florida.
The cat bond also provides the insurer with three years of protection and is structured across four tranches of notes backing indemnity-triggered coverage, three of which are occurrence-triggered tranches and one being an annual aggregate triggered tranche.
As a growing insurer, having launched operations in early 2025 and expanded through both new business origination and the assumption of policies from Citizens Property Insurance Corporation, Mangrove appears to be heavily focused on building a resilient balance sheet supported by diversified sources of risk capital.
Stephen Weinstein, CEO and Founder of Mangrove Property Insurance, commented: “This inaugural catastrophe bond represents an important milestone for Mangrove. We launched Mangrove with a strategic intention of setting new standards for risk transfer for a Florida homeowners insurer, and to be an optimal, long-term partner for reinsurers and ILS investors.
“The Buttonwood Re transaction provides important new protection for Mangrove policyholders with efficiently structured multi-year and aggregate cover. We were also pleased to obtain protection from more than 20 investors, most of whom are new capital partners for Mangrove.”
He continued: “Going forward, we anticipate being a consistent participant in the catastrophe bond market, and affording growth opportunities to our supports and both the traditional and non-traditional markets.”
Gallagher Securities, the insurance-linked securities (ILS) and capital markets broker-dealer division of reinsurance broker Gallagher Re, acted as sole structuring agent and sole bookrunner for the transaction, while Willkie Farr & Gallagher LLP acted as legal counsel to Mangrove.
Law firm Appleby Bermuda, modeling agent Moody’s Risk Management Solutions, Inc., and Artex Capital Solutions, the ILS market service provider arm of Artex Risk Solutions, also provided service during the marketing phase of the transaction too.
As a reminder, you can read all about this new Buttonwood Re Ltd. (Series 2026-1) catastrophe bond and view details of more than 1,250 other cat bond issuances in the extensive Artemis Deal Directory.
