Slide Insurance Company is back in the catastrophe bond market with an initial target to secure $250 million of collateralized named storm reinsurance through a Purple Re Ltd. (Series 2026-1) issuance, that seeks protection across a greater number of states than any of its previous cat bond deals, Artemis can report.
With already $660 million of catastrophe bond backed protection, Slide continues to deepen the participation of capital markets and insurance-linked securities (ILS) investors in its named storm and hurricane reinsurance arrangements, with additional meaningful reinsurance limit now sought.
$200 million of limit from Slide’s Purple Re Ltd. (Series 2023-1) and Purple Re Ltd. (Series 2023-2) is set to mature before the 2026 hurricane season begins, so this new Series 2026-1 issuance already looks targeted to more than replace that.
Read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.
This Purple Re Series 2026-1 catastrophe bond issuance has an initial target to secure $250 million of fully-collateralized reinsurance for the company, through a single tranche of notes to be issued by Bermuda based special purpose insurer (SPI) Purple Re Ltd., sources told us.
The reinsurance protection from this new Purple Re 2025-1 cat bond will benefit both Slide Insurance Company and its Slide Specialty Insurance Company subsidiary, the underwriting entity previously named Pawtucket.
Purple Re Ltd. will issue a single tranche of Series 2026-1 notes that will be offered and sold to cat bond funds and investors, with the proceeds raised set to fully-collateralize reinsurance agreements between the issuer and Slide.
The $250 million of Series 2026-1 cat bond notes on offer will provide Slide with fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis, across the states of Florida, South Carolina, Rhode Island, New Jersey and New York, while the notes are largely exposed on an expected loss basis to major hurricanes in Florida.
Notably though, that is the broadest coverage in state terms of any Purple Re cat bond for Slide so far, we understand, as all its previous cat bonds have only provided reinsurance for named storms in Florida and South Carolina.
The term of coverage will run three annual risk periods from June 1st, so with maturity scheduled for early June 2029.
The currently $250 million of Purple Re Series 2026-1 Class A notes will have an initial attachment point at $1.332 billion and an initial exhaustion point at $1.652 billion, giving them an initial attachment probability of 1.69%, initial base expected loss of 1.51% and they come with price guidance for a risk interest spread of between 6.75% and 7.5% to be paid, we are told.
It’s good to see Slide looking to replace coverage from maturing catastrophe bonds and to upsize on the reinsurance they provided.
As the insurer grows, we can expect more cat bond opportunities to come from Slide, as the company and its founder have a long history of tapping the capital markets for efficient reinsurance capacity.
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.
