Slide Insurance Company has now priced its new Purple Re Ltd. (Series 2026-1) catastrophe bond transaction, successfully securing the 28% upsized target of $320 million in multi-year collateralized named storm reinsurance limit at below guidance pricing, Artemis has learned.
As we reported in an update, sources told us that the insurer’s ambitions had been raised, with the company lifting the issuance size target to $320 million of fully-collateralized reinsurance.
At the same time, we were told that the price guidance for the risk interest spread to be paid to investors had also been updated and lowered for the cat bond notes on offer.
Now, we’re told the Purple Re Series 2026-1 cat bond notes have been successfully priced, with Slide securing its upsized target for protection at pricing below the initial guidance.
As a result, this becomes the largest cat bond so far in the Purple Re series of deals for sponsor Slide.
You can read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.
With the deal now priced and on its way to settlement, Slide has secured the upsized target of $320 million of fully-collateralized reinsurance for the company, through the single tranche of notes that Bermuda based special purpose insurer (SPI) Purple Re Ltd. will now issue.
The notes will provide Slide’s underwriting subsidiaries with a three year source of named storm reinsurance on an indemnity trigger and per-occurrence basis, covering the company across the states of Florida, South Carolina, Rhode Island, New Jersey and New York, although the notes major exposure, on an expected loss basis, is to major hurricanes affecting Florida.
What was initially a $250 million tranche of Class A notes have been successfully upsized to become a $320 million issuance.
The $320 million of Class A notes come with an initial base expected loss of 1.51% and were first offered to cat bond investors with price guidance for a risk interest spread of between 6.75% and 7.5% to be paid.
As we reported in our update on this deal, that guidance range was reduced to between 6.5% and 7.0% and we’re now told that the final pricing for the notes was at a spread of 6.5%, so below the initial guidance range.
Which indicates strong execution for Slide, as it secured more reinsurance than initially targeted at better than anticipated pricing, so it’s no surprise the insurer capitalised on market conditions to secure its largest catastrophe bond so far.
As we explained in a previous article, $200 million of limit from Slide’s Purple Re Ltd. (Series 2023-1) and Purple Re Ltd. (Series 2023-2) cat bonds is set to mature before the 2026 hurricane season begins, so this new Series 2026-1 issuance will now more than replace that.
Slide has $660 million of cat bond risk capital outstanding at this time, according to the Artemis cat bond sponsor leaderboard.
But, once this new cat bond settles that will be increased to $980 million, before then falling back to $780 million in advance of the hurricane season once those two maturities occur.
As a result, Slide will go into the 2026 hurricane season with the most catastrophe bond supported reinsurance limit in the firm’s history.
There is also a chance Slide could return before the wind season begins, if it feels cat bond market pricing is conducive enough to lock in more multi-year capital markets protection this year.
You can read all about this new Purple Re Ltd. (Series 2026-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
