Oceanside Re Ltd. (Series 2025-1)

This is a debut catastrophe bond for first-time sponsor Ocean Harbor Insurance Group, which has come to the capital market seeking $75 million or more in catastrophe reinsurance protection for its exposures in New York state from this Oceanside Re 2025-1 issuance.

For its debut catastrophe bond, the company has established Oceanside Re Ltd. in Bermuda, which will be registered as a special purpose insurer (SPI), for the issuance of series of cat bond notes, Artemis has learned from sources.

We understand that this debut catastrophe bond from Ocean Harbor, is designed to provide multi-year and fully-collateralized reinsurance to protect its Ocean Harbor Casualty Insurance Company entity and in future any subsidiaries that are added to the coverage.

Oceanside Re Ltd. is set to offer a $75 million Series 2025-1 Class A tranche of notes to investors, that will be sold and the proceeds used to furnish collateral to support a reinsurance agreement between the issuer and Ocean Harbor.

That reinsurance agreement will provide Ocean Harbor Insurance with a three year source of catastrophe reinsurance covering named storm and severe weather risks in the state of New York running to the end of May 2028, we understand.

The reinsurance protection will be structured on a per-occurrence basis and using an indemnity trigger, we are also told.

Sources said that the reinsurance coverage would have an attachment point at $50 million of losses and cover a share up to $150 million.

The $75 million of Series 2025-1 Class A notes that Oceanside Re is offering to investors come with an initial attachment probability of 4.9%, an initial expected loss of 3.102% and are being offered with price guidance in a range from 6% to 6.5%, we are told.

Update 1:

We understand that Ocean Harbor Insurance Group has now secured the targeted $75 million of named storm and severe weather reinsurance protection from its debut Oceanside Re 2025-1 catastrophe bond.

The $75 million of Series 2025-1 Class A notes that Oceanside Re is issuing have been priced to pay investors a spread of 6% we understand, so at the bottom of the initial guidance range.