Florida Peninsula Insurance Company is now looking to upsize on its initial target for named storm reinsurance through the Palm Re Ltd. (Series 2026-1) catastrophe bond issuance, with the firm now seeking to secure $225 million of protection while the price guidance has also been lowered, this publication can report.
It will become the third in the Palm Re series of cat bonds that the insurer has sponsored, having secured $150 million of Florida named storm reinsurance from its debut catastrophe bond deal, the Palm Re Ltd. (Series 2024-1) issuance.
Florida Peninsula then followed that up with a further $250 million of named storm reinsurance from a Palm Re Ltd. (Series 2025-1) cat bond issuance sponsored one year ago.
Now, we’re told the target size for this Palm Re 2026-1 issuance has been increased to $225 million, while the tranche of notes on offer have seen their price guidance lowered.
Much like its first two cat bonds, Florida Peninsula Insurance Company, a specialist property underwriter in the state, is targeting reinsurance protection for itself and subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange with its third catastrophe bond sponsorship.
The single tranche of Series 2026-1 Class A notes that Palm Re Ltd., Florida Peninsula’s Bermuda based special purpose insurer (SPI), is offering, are designed to provide the company with indemnity based Florida named storm reinsurance on a per-occurrence basis and over a three year term running from June 1st 2026.
What was a $150 million Class A tranche are now pitched at $225 million in size. These notes would attach their coverage at $970 million of losses to the ceding companies and protect a share up to exhaustion at $1.42 billion.
These notes come with an initial attachment probability of 1.57%, an initial base expected loss of 1.37% were first offered to investors with spread price guidance in a range from 5.75% to 6.25%, but that has now fallen to a new range of 5.25% to 5.75%, we are told.
As we’ve explained before, this new Palm Re 2026-1 catastrophe bond will sit higher up in the Florida Peninsula reinsurance tower, with the 2025 and 2024 notes both in layers beneath it.
It appears that Florida Peninsula will look to secure more than its initially targeted reinsurance from its latest catastrophe bond, and at lower pricing than the initial guidance.
As a reminder, you can read all about this new Palm Re Ltd. (Series 2026-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.
