Florida Peninsula secures upsized $250m Palm Re 2026-1 cat bond at reduced pricing

Florida Peninsula Insurance Company has now priced and secured the two-thirds upsized target of $250 million of named storm reinsurance from its new Palm Re Ltd. (Series 2026-1) catastrophe bond issuance, getting the capital markets coverage at a pricing level below guidance, Artemis has learned.

Florida Peninsula came back to the cat bond market in March, for what will now become the company’s third successful cat bond sponsorship in the Palm Re series of deals.

In a first update on the transaction, we reported that the target was raised in size, with Florida Peninsula seeking $225 million of protection while the price guidance for the notes had fallen.

Then, in a second update we reported that the size target had been raised again, with Florida Peninsula seeking $250 million in indemnity based Florida named storm reinsurance, while the price guidance for the notes on offer had been lowered once again.

Now, we can report that Florida Peninsula successfully finalised its third cat bond sponsorship to provide the two-thirds upsized $250 million of multi-year and collateralized reinsurance, while the pricing was finalised at a below guidance level.

The now confirmed as $250 million Class A tranche of Series 2026-1 notes that Palm Re Ltd. is set to issue will provide Florida Peninsula Insurance Company, and subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange, with indemnity based Florida named storm reinsurance on a per-occurrence basis, over a three year term running from June 1st 2026.

The $250 million of Series 2026-1 Class A notes from Palm Re Ltd. come with an initial base expected loss of 1.37%.

The notes were first offered to investors with spread price guidance in a range from 5.75% to 6.25%, which was then lowered to an updated range of 5.25% to 5.75%, before being revised and lowered again to a range of between 4.75% and 5.25%.

Now, we’re told by sources that the $250 million of Palm Re Ltd. Series 2026-1 Class A notes have been priced to pay investors an initial risk interest spread of 5%, so roughly 16% below the mid-point of initial guidance.

As a result, Florida Peninsula has secured its third Palm Re cat bond at the equal largest size to its last sponsorship from 2025.

Once this new 2026-1 issuance has settled, Florida Peninsula will have $650 million of Florida named storm reinsurance outstanding for the upcoming hurricane season from its Palm Re program of catastrophe bond deals.

As a reminder, you can read all about this new Palm Re Ltd. (Series 2026-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.