Reinsurance buyers in Florida continue to turn to and leverage the catastrophe bond amidst rising appetite for risks from the state and softening of property catastrophe rates, with over $3.2 billion of new Florida-focused cat bonds having been issued thus far for 12 sponsors in 2026 year-to-date (up to May 12, 2026), according to Guy Carpenter.
In its June 2026 Florida Reinsurance Renewal Report, broker Guy Carpenter highlights that in 2026 YTD, 42 different cat bonds were issued through 39 sponsors, with these transactions totalling over $10 billion in limit, which matches pace with the same point of activity from 2025.
Data from the report, illustrated in the chart below, shows that Florida catastrophe bond prices are down year-on-year.
You can find details on all of the catastrophe bond deals mentioned above, including how the pricing was adjusted during their offering, in our extensive Deal Directory.
This pricing trend underscores that the catastrophe bond market and insurance-linked securities (ILS) funds remain extremely well-capitalised, with capital inflows creating a highly competitive environment that drives down costs of protection for sponsors.
You can analyse cat bond issuance price dynamics in our range of charts.
Ultimately, this abundance of liquidity has shifted leverage heavily in favour of Florida reinsurance buyers at the recent June 1st renewals.
“Over $3.2 billion of new Florida-focused catastrophe bonds have been achieved thus far for 12 sponsors, including three new Florida-focused insurer sponsors: People’s Trust Insurance, Olympus Insurance and Mangrove Insurance,” the report explains.
As a reminder, you can read about these Florida-focused catastrophe bonds and view details of more than 1,250 other cat bond issuances in the extensive Artemis Deal Directory.
“Continued softening pricing in 2026 YTD and improved terms were key contributors to elevated activity, including from Florida-focused insurers,” Guy Carpenter added.
The broker’s reinsurance report also indicates that the legislative reforms in Florida have continued to help reinvigorate interest in Florida from the ILS investor community.
According to the firm, this heightened interest has been reflected in the greater utilisation of cat bonds by Florida insurers, as well as the adjustment of cat bond capacity to a lower position within the risk transfer tower, both in conjunction with and beneath the Florida Hurricane Catastrophe Fund (FHCF).
Investors have also reportedly shown a willingness to support sponsors who are pursuing more extensive cascading coverage, the broker added.
We covered this dynamic, of the return of top-and-drop covers in Florida and other expansions of coverage terms in an article yesterday.
The Florida reinsurance market has recovered remarkably after the challenges that had been faced just a few years ago.
Catastrophe bonds continue to play a meaningful role, with Guy Carpenter estimating that roughly 18% of occurrence catastrophe capacity came from the cat bond market at these renewals.
In addition, Guy Carpenter also highlighted how terms have become more accommodating for buyers of collateralized reinsurance as well in Florida, as “Collateralized reinsurers more frequently offered combined packages solving for multiple risk transfer needs, such as top and drop and top and aggregate covers.”
Also read: Florida renewal risk-adjusted pricing down 15% to 20% across many layers: Guy Carpenter
