Nature Coast Re Ltd. (Series 2026-4)

SafePoint Insurance is back and looking to add another layer of reinsurance protection from the capital markets, effectively extending a very recently priced cat bond sponsorship with one additional tranche of notes.

SafePoint successfully priced and secured its largest catastrophe bond ever just earlier this week, with the $650 million Nature Coast Re Ltd. (Series 2026-2).

This new Nature Coast Re Ltd. Series 2026-4 offering features a single tranche of notes designed to sit above the 2026-2 tranches, so extending the same protection higher up its reinsurance tower.

Nature Coast Re Ltd. is offering investors a single tranches of Series 2026-4 Class AAA catastrophe bond notes that will be sold to investors to provide the collateral to fully-support an underlying reinsurance agreement.

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

These Nature Coast Re 2026-4 cat bond notes will provide fully-collateralized reinsurance protection covering losses from named storms across the states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas, the same as the Series 2026-2 notes.

The coverage tracks the same as well, being on an indemnity and per-occurrence trigger basis and the reinsurance will run across a four-year period from December 1st, again the same as the Series 2026-2 notes.

The only difference to the two tranches of Series 2026-2 notes, with these new Series 2026-4 notes, is the attachment level and so how risky they are.

These Nature Coast Re 2026-4 cat bond notes are more remote in terms of their risk and we’re told are designed to sit at the top of the tower, above the two tranches of the 2026-2 issuance.

The currently $100 million tranche of Series 2026-4 Class AAA notes have an attachment point of $300 million, taking a share of losses up to exhaustion at $900 million, sources told us, giving room for the issuance to be upsized from the initial target, should SafePoint elect to.

The $100 million of Series 2026-4 Class AAA notes that Nature Coast Re is offering come with an initial attachment probability of 0.6%, an initial base expected loss of 0.46% and are being offered to investors with price guidance in a range for a spread of between 3% and 3.5%, we understand.

With the 2026-2 notes, we were told that an effective first-event attachment equivalent would be at around $600 million for the Class A notes and $1.6 billion for the Class AA’s.

We’re told that for the Series 2026-4 Class AAA notes, the effective first-event attachment would be higher at $1.9 billion, directly over the 2026-2 AA tranche.