Slide Insurance Company has now finalized pricing for its second catastrophe bond, with the $100 million deal from Purple Re Ltd. (series 2023-2) secure with a deviation of around 9% below the initial forecast midpoint.
It’s a good result for the second cat bond sponsorship of Slide, the comprehensive homeowners insurance technology founded by renowned industry executive Bruce Lucas.
The company sponsored its first $100 million Purple Re 2023-1 cat bond in April, securing this layer of reinsurance coverage at a price slightly above the midpoint of the initial price guidance.
But, with this second Purple Re catalytic bond, Slide has secured reinsurance at a discount, with the spread now finalized below the originally traded range, to provide cost-effective protection for the growing carrier.
So, with this Purple Re 2023-2 cat bond, Slide has now secured an additional $100 million in named storm protection from the capital markets.
The ratings will cover Slide against losses from named storms in Florida and South Carolina on an indemnity trigger and per event basis, for a period of just under three years.
Purple Re 2023-2 notes occupy a $100 million layer atop Slide’s Reinsurance Tower, directly above the cat 2023-1 bond.
As a result, Slide has now filled the top $200 million of its reinsurance tower with the backing of capital market investors and ILS funds.
The $100 million Purple Re Series 2023-2 Class A tickets have an expected initial loss of 1.05%, tying on a basis-to-basis basis to just over $850 million in losses for the insurer. .
These notes were first offered to ILS investors with spread price indications in the range of 10.5% to 11.5%, but as we reported earlier this week, this range has been lowered to 10% to 11%.
We are now told that the ticket price has been fixed and that Slide will pay a 10% spread for the $100 million cat Purple Re 2023-2 bond protection.
This is a price reduction of just over 9% from the middle of the original price range.
As we recently reported, Slide is one of the insurers expected to underwrite property insurance policies for Florida citizens this summer, which will increase its exposure in Florida.
It’s encouraging to see Slide looking to the cat bond market and ILS investors to help it bolster its reinsurance support for continued carrier expansion.
You can find out all about this new catastrophe bond from Purple Re Ltd. (series 2023-2) and over 900 other catastrophe bond deals in our extensive Artemis Deal Directory.