SafePoint raises Nature Coast Re 2026-1 cat bond target to as much as $250m

SafePoint Insurance Company is aiming to upsize its new catastrophe bond, with the Nature Coast Re Ltd. (Series 2026-1)  issuance now targeted to secure the company up to $250 million of multi-year named storm reinsurance protection from capital market investors, Artemis understands.

SafePoint returned to the catastrophe bond market in the second-half of January, for what will become the fifth catastrophe bond sponsored under its Nature Coast Re program and its ninth cat bond sponsorship in total.

Initially the insurer was seeking $150 million in reinsurance through its latest cat bond issuance, but we’re now told that its ambitions have been raised, with between that initial amount and an upsized $250 million of fully-collateralized reinsurance now being sought.

At the same time, sources have said that the price guidance for the risk interest spread to be paid to investors has been updated for the notes and narrowed towards the mid-point of the range that was initially offered.

Read about all of SafePoint’s cat bonds in our extensive Deal Directory.

So with this new Nature Coast Re Series 2026-1 cat bond SafePoint is now targeting up to $250 million of fully-collateralized reinsurance protection covering losses from named storms across the states of Florida, Louisiana, Alabama, Mississippi, and Texas, on an indemnity and per-occurrence basis, to run across a four-year term.

The beneficiaries of the reinsurance will be SafePoint Insurance Company itself, as well as its reciprocal exchanges, the Cajun Underwriters Reciprocal Exchange entity and Manatee Insurance Exchange.

The Series 2026-1 Class A notes are now targeted at from their initial $150 million up to $250 million in size.

The notes come with an initial base expected loss of 1.74% and were initially offered to investors with price guidance in a range for a spread of between 7.5% and 8.25%, but the price guidance has been narrowed towards the mid-point of that range and updated to from 7.75% to 8%, sources said.

SafePoint currently has $595 million of catastrophe bond backed reinsurance protection outstanding, according to our cat bond sponsor leaderboard.

This new Nature Coast Re 2026-1 cat bond will add to SafePoint’s named storm reinsurance for the coming hurricane season, after which a $195 million Nature Coast Re 2023-1 matures.

So, if this new issuance is successfully upsized to $250 million, it would see SafePoint and its underwriting entities with $845 million of catastrophe bond protection for the 2026 hurricane season.

You can read all about this new Nature Coast Re Ltd. (Series 2026-1)  catastrophe bond from Safepoint as well as details on almost every cat bond issued in the extensive Artemis Deal Directory.