SafePoint more than doubles Nature Coast Re 2026-2 cat bond target to $600m

SafePoint Insurance Company is now seeking its largest catastrophe bond sponsorship ever, as the expansive insurance platform has more than doubled the target size to $600 million for its new Nature Coast Re Ltd. (Series 2026-2)  cat bond issuance, we are told.

SafePoint returned earlier this month with an initial target to secure $250 million of multi-year named storm reinsurance protection from its latest foray into the cat bond market.

Now, we understand that SafePoint is targeting a significant upsizing for this offering, more than doubling it to provide as much as $600 million of multi-year reinsurance protection. At the same time, we understand the price guidance for each of the two tranches of notes on offer has been lowered.

This will become SafePoint’s sixth cat bond under the Nature Coast Re special purpose insurer, and its tenth cat bond sponsorship in total. Read about all of SafePoint’s cat bonds in our extensive Deal Directory.

SafePoint’s largest cat bond sponsorship prior to this one was its $250 million Nature Coast Re Ltd. (Series 2026-1) issuance that came to market in February this year.

As a result, this now $600 million target for the 2026-2 offering is meaningfully larger, demonstrating SafePoint’s appetite for efficient reinsurance protection, as well as its growing stature as an underwriting company and platform.

We won’t repeat all the details of the cat bond in our updates on size and pricing, so be sure to visit the Deal Directory entry for more background on the transaction.

Nature Coast Re Ltd. is offering investors two tranches of Series 2026-2 catastrophe bond notes to source reinsurance for SafePoint Insurance Company itself and the two reciprocal exchanges it operates, to cover losses from named storms on an indemnity and per-occurrence trigger basis, while the protection will run across a four-year period from December 1st.

Initially the target was for $250 million of reinsurance across the two tranches, which has now been more than doubled to $600 million, as we said. In our earlier report on this deal when it launched, we explained that the cat bond will cover losses in the widest range of US states of any cat bond in SafePoint’s history, as the insurer continues to expand and grow into new locations.

What was a $100 million tranche of Series 2026-2 Class AA notes are now targeted at $300 million in size, sources said. The Class AA notes come with an initial base expected loss of 0.73% and were initially offered to investors with price guidance in a range for a spread of between 4% and 4.75%, but that range has now been lowered to between 3.75% and 4%, we understand.

What was a $150 million tranche of Series 2026-2 Class A notes are now also targeted to be $300 million in size. The Class A notes have an initial base expected loss of 1.66% and were first offered to investors with price guidance in a range for a spread of between 6.75% to 7.5%, but again we’re told this has been lowered to a revised range of 6.25% to 6.75%.

SafePoint looks set to benefit from catastrophe bond market conditions, in being able to secure much more reinsurance than initially sought, with the pricing now targeted at the bottom-end of or lower than the initially marketed ranges.

A $600 million catastrophe bond will be a notable increase to SafePoint’s protection from the insurance-linked securities (ILS) market if secured and this could be another deal that sends a strong signal to potential cat bond sponsors about the currently attractive issuance conditions in the market.

You can read all about this new Nature Coast Re Ltd. (Series 2026-2)  catastrophe bond from SafePoint as well as details on almost every cat bond issued in the extensive Artemis Deal Directory.