Florida Peninsula Insurance Company is back in the catastrophe bond market looking to secure $150 million or more in named storm reinsurance from its third sponsorship of a Palm Re Ltd. (Series 2026-1) cat bond issuance, Artemis understands.
Florida Peninsula secured $150 million of Florida named storm reinsurance from its debut catastrophe bond deal, the Palm Re Ltd. (Series 2024-1) issuance.
The insurer then followed that up with a further $250 million of named storm reinsurance from a Palm Re Ltd. (Series 2025-1) cat bond issuance sponsored one year ago.
Now the insurer is back and looking to add more catastrophe bond backed protection to its reinsurance tower with its third sponsorship in 2026, we have learned.
Like its first two cat bonds, Florida Peninsula Insurance Company, a specialist property underwriter in the state, is targeting reinsurance protection for itself and subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange with its third 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.
It’s encouraging to see Florida Peninsula continuing to embrace the catastrophe bond market for reinsurance, looking to layer the protection from the Palm Re issuances throughout layers of the tower.
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.
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