Nature Coast Re Ltd. (Series 2026-1)

US primary insurance group SafePoint Insurance Company is back in the catastrophe bond market and seeking to sponsor its fifth cat bond under the Nature Coast Re special purpose insurer, which will become its ninth cat bond sponsorship in total.

Nature Coast Re Ltd. is targeting the issuance of a singl tranche of Series 2026-1 Class A notes that will be sold to investors and the proceeds used to collateralize a reinsurance agreement.

That reinsurance agreement will provide multi-year reinsurance protection to the benefit of 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.

Initially, we’re told there is a $150 million target for this Series 2026-1 cat bond note issuance by Nature Coast Re Ltd.

Nature Coast Re Ltd. is offering investors a single Class A tranche of Series 2026-1 notes that will be sold to provide the collateral to fully-support an underlying reinsurance agreement.

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

We are told this first Nature Coast Re cat bond issuance of 2026 is designed to provide SafePoint and its reciprocal underwriting entities with a source of fully-collateralized reinsurance protection covering losses from named storms across the states of Florida, Louisiana, Alabama, Mississippi, and Texas.

The coverage from this cat bond is structured on an indemnity and per-occurrence trigger basis, while it will run across a four-year period from completion of the issuance.

The currently $150 million of Series 2026-1 Class A notes will attach their reinsurance coverage at an attachment point of $300 million, taking a share of losses up to exhaustion at $1.3 billion, sources said, giving plenty of room for the issuance to be upsized from the initial target, should SafePoint elect to.

The $150 million of Series 2026-1 Class A notes that Nature Coast Re is offering come with an initial attachment probability of 3.28%, an initial base expected loss of 1.74% and are being marketed to investors with price guidance in a range for a spread of between 7.5% and 8.25%, we understand.

Update 1:

We are told that SafePoint is now targeting between the initial $150 million and an upsized $250 million of reinsurance from its latest Nature Coast Re 2026-1 catastrophe bond.

The Series 2026-1 Class A notes that Nature Coast Re is offering now have updated price guidance for a risk interest spread of between 7.75% and 8%, so still within the initial range that was offered.

Update 2:

SafePoint has now successfully upsized this new Nature Coast Re 2026-1 catastrophe bond by two-thirds to secure the upper-target of $250 million of multi-year reinsurance limit with the issuance.

The $250 million of Series 2026-1 Class A notes that Nature Coast Re will issue have now been priced for a risk interest spread of 8% to be paid to investors, so within the upper-half of the initial guidance range they were offered with.