Everglades Re II Ltd. (Series 2026-1)

Florida’s Citizens Property Insurance Corporation has ventured back to the catastrophe bond market again in 2026, with an initial target to secure $450 million or more of fully-collateralized and multi-year reinsurance protection against named storm and hurricane risks in the state.

This will be the seventeenth sponsorship of a series of catastrophe bonds by Florida Citizens that we have analysed and listed in our Deal Directory, while it is the fifteenth issuance sponsored by Citizens under a cat bond issuer that uses the Everglades Re name.

Now, Florida Citizens is back in the market, with its Bermuda based special purpose insurer (SPI) Everglades Re II Ltd. aiming to issue three tranches of Series 2026-1 cat bond notes, each to collateralize a three-year source of reinsurance for Florida Citizens.

These three tranches of Series 2026-1 cat bond notes are being offered to catastrophe bond funds and investors and will provide the Florida Citizens with multi-year annual aggregate named storm reinsurance covering the state of Florida, on an indemnity trigger basis, we understand.

The reinsurance protection will run from the date of issuance in May for a three year term, across three annual aggregate risk periods.

These new Series 2026-1 cat bond notes are expected to sit alongside some of the remaining tranches from the 2025-1 cat bond deal, as well as a currently unknown amount of traditional reinsurance.

Everglades Re II is offering a $125 million tranche of Series 2026-1 Class A notes that would attach their coverage at $4.574 billion of losses and exhaust it at $5.305 billion, giving them an initial attachment probability of 1.46%, an initial base expected loss of 1.35% and they are being offered to investors with spread price guidance in a range from 6% to 6.5%, we understand.

A $150 million tranche of Series 2026-1 Class B notes would attach their coverage at $3.724 billion of losses and exhaust it at $4.574 billion (so sitting beneath the A’s), giving them an initial attachment probability of 2%, an initial base expected loss of 1.74% and they are being offered to investors with spread price guidance in a range from 7% to 7.5%.

A final $175 million tranche of Series 2026-1 Class C notes would attach their coverage at $2.874 billion of losses and exhaust it at $3.724 billion (so sitting beneath the B’s), giving them an initial attachment probability of 2.87%, an initial base expected loss of 2.41% and they are being offered to investors with spread price guidance in a range from 8.75% to 9.25%, sources said.