SafePoint raises Nature Coast Re 2026-2 cat bond target again to $650m

SafePoint Insurance Company has raised the target size for its latest catastrophe bond sponsorship a second time, now seeking $650 million of collateralized reinsurance from its new Nature Coast Re Ltd. (Series 2026-2)  cat bond issuance, Artemis has learned.

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.

In our first update on this offering we reported that SafePoint was targeting a significant upsizing for the deal, more than doubling it to provide as much as $600 million of multi-year reinsurance protection, while the price guidance for each of the two tranches of notes on offer had been lowered.

That was already set to be SafePoint’s biggest cat bond sponsorship ever, but we’ve now learned the size target has risen further.

Sources tell us SafePoint is now aiming to secure $650 million of reinsurance from the two tranches of Nature Coast Re 2026-2 notes that are on offer, while the price guidance has been revised again at the low-ends of the updated lower ranges.

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.

We won’t repeat all the details of this new 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 across states the companies operate in on an indemnity and per-occurrence trigger basis across a four-year period from December 1st.

What was a $100 million tranche of Series 2026-2 Class AA notes are still targeted at their increased $300 million in size, we understand. 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%, which was first lowered to between 3.75% and 4%, and we now are told the guidance is fixed at the lowest-end of 3.75%

What was initially a $150 million tranche of Series 2026-2 Class A notes saw their target first raised to $300 million, but we’re now told are being marketed at $350 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%, which was then lowered to a revised range of 6.25% to 6.75% and we’re now told are being offered with a spread of 6.25%, again the low-end of the updated range.

SafePoint looks set to capitalise on catastrophe bond market conditions, in being able to secure meaningfully more reinsurance than initially sought, with the pricing now targeted to be below the initially marketed ranges.

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.