Sanders Re II Ltd. (Series 2025-3)

Allstate returned to the catastrophe bond market and secured an additional $66 million Florida-focused multi-peril reinsurance protection through a new Sanders Re II Ltd. (Series 2025-3) cat bond issuance, that we understand was privately placed with investors as zero-coupon notes.

Sanders Re II Ltd. issued the $66 million tranche of Series 2025-3 Class A notes, which were sold to investors and the proceeds used to collateralize an underlying multi-peril reinsurance agreement with Allstate.

The transaction sits low-down in Allstate’s Florida reinsurance tower, attaching at just $30 million of losses on a first-event basis and exhausting its coverage at $96 million.

Details with this new Sanders Re II Series 2025-3 cat bond are more limited though, given the privately placed nature of this latest catastrophe bond issuance sponsored by Allstate.

We are told these notes were less broadly marketed and offered to a relatively small group of cat bond fund investors.

The notes were structured as zero-coupon notes and issued as Section 4(a)2 securities, then became 144A eligible after their settlement.

The covered perils are Florida named storm, earthquake, severe weather, wildfire, volcanic eruption, meteorite impact, the same as Allstate’s other Florida cat bonds.

The Series 2025-3 notes have a one-year term, maturing in early June 2026.