SafePoint Insurance Company has successfully upsized its new catastrophe bond by two-thirds, securing $250 million of multi-year named storm reinsurance protection from capital market investors with the Nature Coast Re Ltd. (Series 2026-1) issuance, Artemis can report.
At launch to investors, the insurer was seeking $150 million in reinsurance through its latest cat bond issuance.
But, as we reported in an update SafePoint raised its target for its latest cat bond, with between that initial amount and an upsized $250 million of fully-collateralized reinsurance sought.
At the same time, the price guidance for the risk interest spread to be paid to investors was also updated for the notes and narrowed towards the mid-point of the range that was initially offered.
We’re now told by sources that SafePoint successfully secured the upper-target size, growing the amount of limit provided by this Nature Coast Re 2026-1 cat bond by two-thirds to $250 million, while the pricing on the notes was finalised within the upper-half of initial guidance.
Read about all of SafePoint’s cat bonds in our extensive Deal Directory.
With the cat bond notes now priced, SafePoint has secured $250 million of fully-collateralized reinsurance protection covering losses from named storms across the states of Florida, Louisiana, Alabama, Mississippi, and Texas, on an indemnity and per-occurrence basis, to run across a four-year term from the Nature Coast Re Series 2026-1 cat bond issuance.
The $250 million of multi-year catastrophe reinsurance will benefit SafePoint Insurance Company itself, as well as its reciprocal exchanges, the Cajun Underwriters Reciprocal Exchange entity and Manatee Insurance Exchange.
The Series 2026-1 Class A notes were finalised at $250 million in size, a two-thirds increase from the initial target.
The notes come with an initial base expected loss of 1.74%. They were initially offered to investors with price guidance in a range for a spread of between 7.5% and 8.25%, which was later narrowed to a tighter range of 7.75% to 8%, and sources have now told us final pricing was at for a risk interest spread of 8%, so within the upper-half of the initial range.
It’s another very strong result in the catastrophe bond market for SafePoint, as the company continues to build-out more capital markets backed reinsurance in securitized formats.
Prior to this new deal settling, SafePoint has $595 million of catastrophe bond backed reinsurance protection outstanding, according to our cat bond sponsor leaderboard.
This new Nature Coast Re 2026-1 cat bond will add to SafePoint’s named storm reinsurance for the coming hurricane season, after which a $195 million Nature Coast Re 2023-1 matures.
So, with this new issuance successfully upsized to $250 million, it will now see SafePoint and its underwriting entities with $845 million of outstanding catastrophe bond backed reinsurance protection for the 2026 hurricane season.
You can read all about this new Nature Coast Re Ltd. (Series 2026-1) catastrophe bond from Safepoint as well as details on almost every cat bond issued in the extensive Artemis Deal Directory.
