Purple Re Ltd. (Series 2026-1)

This will be the fifth catastrophe bond in the Purple Re Ltd. series sponsored by full-stack homeowners property insurtech writer Slide Insurance Company.

Slide continues to deepen the participation of capital markets and insurance-linked securities (ILS) investors in its named storm and hurricane reinsurance arrangements, with additional meaningful reinsurance limit now sought.

This Purple Re Series 2026-1 catastrophe bond issuance has an initial target to secure $250 million of collateralized reinsurance for the company, through a single tranche of notes to be issued by Bermuda based special purpose insurer (SPI) Purple Re Ltd.

The reinsurance protection from this new Purple Re 2025-1 cat bond will benefit both Slide Insurance Company and its Slide Specialty Insurance Company subsidiary.

Purple Re Ltd. will issue a single tranche of Series 2026-1 notes that will be offered and sold to cat bond funds and investors, with the proceeds raised set to fully-collateralize reinsurance agreements between the issuer and Slide.

The $250 million of Series 2026-1 cat bond notes on offer will provide Slide with fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis, across the states of Florida, South Carolina, Rhode Island, New Jersey and New York, while the notes are largely exposed on an expected loss basis to major hurricanes in Florida.

Notably though, that is the broadest coverage in state terms of any Purple Re cat bond for Slide so far, we understand, as all its previous cat bonds have only provided reinsurance for named storms in Florida and South Carolina.

The term of coverage will run three annual risk periods from June 1st, so with maturity scheduled for early June 2029.

The currently $250 million of Purple Re Series 2026-1 Class A notes will have an initial attachment point at $1.332 billion and an initial exhaustion point at $1.652 billion, giving them an initial attachment probability of 1.69%, initial base expected loss of 1.51% and they come with price guidance for a risk interest spread of between 6.75% and 7.5% to be paid, we are told.