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American Integrity now targets 50% upsize to $150m for new Florida cat bond


American Integrity Insurance Company of Florida, Inc. has now lifted its target for the Integrity Re Ltd. (Series 2023-1) catastrophe bond issuance, with a potential 50% upsizing now sought, as the company aims for $150 million of collateralized Florida named storm reinsurance with this deal.

american-integrity-logoAmerican Integrity returned to the catastrophe bond market seeking $100 million or more in collateralized Florida named storm reinsurance protection with this Integrity Re 2023-1 cat bond just over a fortnight ago.

It will be the insurers sixth in the Integrity Re series of catastrophe bonds, and the company has been leveraging catastrophe bonds to provide it with Florida focused collateralized and multi-year reinsurance protection since  2017.

Details of every cat bond from American Integrity can be found here.

As we reported yesterday, the price guidance for this new Integrity Re 2023-1 cat bond was narrowed and shifted higher, while terms related to the bond reset mechanism have been clarified.

We’re now told that a further update sent to investors shows that American Integrity has now lifted its target for this new cat bond, with $150 million of reinsurance now sought from the issuance.

At the same time, we’re also told that the spread pricing has now been fixed at the upper-end of initial guidance.

So, the Integrity Re Series 2023-1 cat bond issuance now targets $150 million of reinsurance protection against named storm events in Florida, on an indemnity and cascading per-occurrence basis, across two Atlantic wind seasons, with a term running from June 1st 2023 to the end of May 2025, for American Integrity.

The single tranche of Series 2023-1 Class A notes that Integrity Re will issue , come with an initial base expected loss of 1.47% and were first offered to cat bond investors with spread price guidance of 11% to 12%, but that guidance was raised and narrowed to 11.5% to 12%, as we reported yesterday.

But we’re now told the price guidance has been fixed at 12%, so the top-end of initial guidance.

Suggesting that American Integrity is willing to pay the top-end price, in return for securing a 50% larger slice of reinsurance protection with its new cat bond.

You can read all about this new Integrity Re Ltd. (Series 2023-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.

Register today for ILS Asia 2023, our next insurance-linked securities (ILS) market conference. Held in Singapore, July 13th, 2023.

Artemis ILS Asia 2023 - Insurance-linked securities conference in Singapore

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