SafePoint returns with $100m target for Nature Coast Re 2025-2 cat bond

SafePoint Insurance Company is back in the catastrophe bond market, with a target to secure $100 million in reinsurance protection from capital market investors through a Nature Coast Re Ltd. (Series 2025-2)  issuance, which sees the company back looking for indemnity, per-occurrence coverage.

Last time SafePoint sponsored a catastrophe bond was back in December 2024, when it secured $200 million of annual aggregate and industry-loss trigger based reinsurance from the Nature Coast Re 2025-1 deal.

That was the insurers’ first cat bond to feature an industry-loss trigger, but for this new Nature Coast Re Series 2025-2 issuance the company is back looking for indemnity protection.

For SafePoint, this will be the fourth cat bond issued under its Nature Coast Re structure and its eighth successful cat bond sponsorship in total once completed. Read about all of SafePoint’s cat bonds in our Deal Directory.

Nature Coast Re Ltd. is set to issue a single Class A tranche of Series 2025-2 notes that will be sold to investors and the proceeds used to collateralize a reinsurance agreement.

That reinsurance agreement will protect SafePoint Insurance Company itself and its reciprocal exchanges, the solely Louisiana focused entity Cajun Underwriters Reciprocal Exchange, and the Florida homeowner and business owner focused Manatee Insurance Exchange.

We understand this cat bond issuance will provide SafePoint and its reciprocal underwriting entities with collateralized reinsurance protection for losses from the named storm peril across the states of Florida, Louisiana, Alabama, Mississippi, and Texas, on an indemnity and per-occurrence trigger basis and across a four-year period from completion of the issuance.

The notes will attach their reinsurance coverage at $600 million and span a share of SafePoint’s reinsurance tower up to $1.4 billion, we understand, leaving plenty of room for them to upsize from the initial $100 million target, should the insurer so choose.

The $100 million of Series 2025-2 Class A notes that Nature Coast Re is going to issue come with an initial attachment probability of 2.98%, an initial base expected loss of 1.58% and are being offered to investors with spread price guidance in a range from 9.75% to 10.75%, sources said.

The nearest comparable cat bond in the series from Nature Coast Re is really the 2024-1 issuance, which priced at a considerably higher multiple than is on offer with this new deal.

You can read all about this new Nature Coast Re Ltd. (Series 2025-2)  catastrophe bond from Safepoint as well as details on every other cat bond ever issued in the extensive Artemis Deal Directory.