SafePoint adds another $100m+ layer to its catastrophe bond with Nature Coast Re 2026-4

In a clear display of the attractive catastrophe bond market conditions sponsors are experiencing, SafePoint Insurance Company is back to add another $100 million or more layer of reinsurance protection to its recently priced indemnity deal, with a Nature Coast Re Ltd. (Series 2026-4) issuance now being offered to investors, Artemis understands.

As we’ve been reporting, SafePoint successfully priced and secured its largest catastrophe bond ever, with the $650 million Nature Coast Re Ltd. (Series 2026-2).

That indemnity and per-occurrence cat bond features two tranches of notes, providing named storm reinsurance protection to the insurer and its reciprocal exchanges, but now SafePoint is back to add a third that sits above them.

In addition, SafePoint is already in the market with a new annual aggregate industry-loss triggered cat bond as well, targeting another $100 million through an Arthur Re Ltd. – Nature Coast Re 2026-3 transaction.

Which means, if the new deals are successful, SafePoint could end up securing $850 million or more in broad-scope cat bond backed reinsurance from the capital markets in just the space of a few weeks.

It’s all the more notable given SafePoint has never been a company to simply sponsor cat bonds for the sake of it, they have always had to make economic sense to its management team.

So, the fact SafePoint is returning again to further extend on its new cat bond coverage, should deliver a strong signal to any potential cat bond sponsors watching on, that market conditions are very attractive right now and multi-year reinsurance can be locked in at attractive rates in the cat bond market.

Onto the new cat bond deal that SafePoint is now sponsoring, which is really an extension to the just priced $650 million Nature Coast Re 2026-2.

Nature Coast Re Ltd. is offering investors a single tranches of Series 2026-4 Class AAA catastrophe bond notes that will be sold to investors to provide the collateral to fully-support an underlying reinsurance agreement.

The reinsurance agreement will protect SafePoint Insurance Company itself and the two reciprocal exchanges it operates, the Louisiana focused Cajun Underwriters Reciprocal Exchange entity, and the Florida homeowner and business owner focused Manatee Insurance Exchange.

These Nature Coast Re 2026-4 cat bond notes will provide fully-collateralized reinsurance protection covering losses from named storms across the states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas, the same as the Series 2026-2 notes.

The coverage tracks the same as well, being on an indemnity and per-occurrence trigger basis and the reinsurance will run across a four-year period from December 1st, again the same as the Series 2026-2 notes.

The only difference to the two tranches of Series 2026-2 notes, with these new Series 2026-4 notes, is the attachment level and so how risky they are.

These Nature Coast Re 2026-4 cat bond notes are more remote in terms of their risk and we’re told are designed to sit at the top of the tower, above the two tranches of the 2026-2 issuance.

The currently $100 million tranche of Series 2026-4 Class AAA notes have an attachment point of $300 million, taking a share of losses up to exhaustion at $900 million, sources told us, giving room for the issuance to be upsized from the initial target, should SafePoint elect to.

The $100 million of Series 2026-4 Class AAA notes that Nature Coast Re is offering come with an initial attachment probability of 0.6%, an initial base expected loss of 0.46% and are being offered to investors with price guidance in a range for a spread of between 3% and 3.5%, we understand.

That price guidance seems aligned with the recently priced 2026-2 indemnity cat bond and as we said, these 2026-4 cat bond notes will sit in a layer above those earlier 2026-2 issuance.

With the 2026-2 notes, we were told that an effective first-event attachment equivalent would be at around $600 million for the Class A notes and $1.6 billion for the Class AA’s.

We’re told that for the Series 2026-4 Class AAA notes, the effective first-event attachment would be higher at $1.9 billion, directly over the 2026-2 AA tranche.

Which shows SafePoint layering efficient reinsurance from the capital markets across a growing share of its reinsurance tower this year, as the company looks to capitalise on cat bond pricing to lock-in multi-year protection that will give the firm meaningful certainty on its reinsurance for the coming years.

Strategically that is a sound move at this stage in the cycle, as predicting the length or depth of the soft market is particularly challenging given the volatile global environment seen today and the uncertainty of how a spate of meaningful catastrophe losses could affect reinsurance investor appetites.

This now marks the seventh cat bond offering under the Nature Coast Re Ltd. special purpose insurer, and SafePoint’s twelfth cat bond sponsorship overall. You can read all about SafePoint’s cat bonds in our extensive Artemis Deal Directory.

You can read all about this new Nature Coast Re Ltd. (Series 2026-4)  catastrophe bond from SafePoint as well as details on almost every cat bond issued in the extensive Artemis Deal Directory.