Palm Re Ltd. (Series 2026-1)

This will be the third Palm Re Ltd. catastrophe bond sponsored by P&C insurer Florida Peninsula Insurance Company, which is seeking $150 million of capital markets backed collateralized Florida named storm reinsurance to cover itself and its subsidiaries.

We understand that Florida Peninsula Insurance Company, a specialist property underwriter in the state, is seeking protection for itself and its subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange with its third Palm Re catastrophe bond.

Palm Re Ltd., Florida Peninsula’s Bermuda based special purpose insurer (SPI), is offering a single tranche of Series 2026-1 Class A notes, that are designed to provide the company with indemnity based Florida named storm reinsurance on a per-occurrence basis and over a three year term running from June 1st 2026.

The $150 million of Palm Re Series 2026-1 Class A cat bond notes would attach their coverage at $970 million of losses to the ceding companies and protect a share up to exhaustion at $1.42 billion, sources said.

The Class A notes will come with an initial attachment probability of 1.56%, an initial base expected loss of 1.36% and the cat bond is being offered to investors with spread price guidance in a range from 5.75% to 6.25%, we are told.

We’re understand that this new Palm Re 2026-1 catastrophe bond will sit higher up in the Florida Peninsula reinsurance tower, with the 2025 and 2024 notes both in layers beneath it.