Nature Coast Re Ltd. (Series 2025-2)

US primary insurer SafePoint Insurance Company has returned to the catastrophe bond market to sponsor what will be its fourth cat bond under the Nature Coast Re structure and its eighth cat bond sponsorship in total.

Nature Coast Re Ltd. is set to issue a single Class A tranche of Series 2025-2 notes that will be sold to investors and the proceeds used to collateralize a reinsurance agreement.

That reinsurance agreement will protect SafePoint Insurance Company itself and its reciprocal exchanges, the solely Louisiana focused entity Cajun Underwriters Reciprocal Exchange, and the Florida homeowner and business owner focused Manatee Insurance Exchange.

We understand this cat bond issuance will provide SafePoint and its reciprocal underwriting entities with collateralized reinsurance protection for losses from the named storm peril across the states of Florida, Louisiana, Alabama, Mississippi, and Texas, on an indemnity and per-occurrence trigger basis and across a four-year period from completion of the issuance.

The notes will attach their reinsurance coverage at $600 million and span a share of SafePoint’s reinsurance tower up to $1.4 billion, we understand, leaving plenty of room for them to upsize from the initial $100 million target, should the insurer so choose.

The $100 million of Series 2025-2 Class A notes that Nature Coast Re is going to issue come with an initial attachment probability of 2.98%, an initial base expected loss of 1.58% and are being offered to investors with spread price guidance in a range from 9.75% to 10.75%, sources said.

Update 1:

We understand that SafePoint has added 50% to the target size for its latest catastrophe bond, with now $150 million in Nature Coast Re 2025-1 notes on offer.

At the same time, the price guidance has been lowered to the bottom of the initial range, for a spread of 9.75% to be paid.

Update 2:

SafePoint secured the 50% upsized target for reinsurance from its latest catastrophe bond, with the $150 million in Nature Coast Re 2025-1 notes now finalised.

The $150 million of Series 2025-2 Class A notes that Nature Coast Re will now issue have been priced to pay investors a spread of 9.75%.