SafePoint secures its largest catastrophe bond ever, $650m Nature Coast Re 2026-2

SafePoint Insurance Company has successfully secured its largest catastrophe bond yet, as the Nature Coast Re Ltd. (Series 2026-2) issuance has been priced to provide a 160% upsized $650 million of collateralized reinsurance protection, while the company also managed to get the coverage at a pricing level below initial guidance, Artemis has learned.

SafePoint made its return to the catastrophe bond market in October. Initially, the target was to secure a $250 million source of multi-year named storm reinsurance protection.

However, as we reported in our first update on this transaction, SafePoint was targeting a meaningful upsizing for the deal, more than doubling it to provide up to $600 million of multi-year reinsurance protection, while at the same time, the price guidance for both tranches of notes on offer had been lowered too.

Earlier this week, we learnt that SafePoint had raised the target size again for its latest catastrophe bond sponsorship, to $650 million, while the price guidance for the two tranches of notes had been revised again at the low-ends of the updated lower ranges.

We’ve now been informed from sources that the notes have been successfully priced to secure the 160% upsized $650 million of multi-year named storm reinsurance protection.

Now priced, this Nature Coast Re Ltd. (Series 2026-2) issuance marks the largest catastrophe bond that SafePoint Insurance Company has ever sponsored.

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

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

Special purpose insurer (SPI) Nature Coast Re will now issue two tranches of Series 2026-2 catastrophe bond notes to source reinsurance for SafePoint Insurance Company itself and the two reciprocal exchanges it operates.

The notes are designed to cover losses from named storms on an indemnity and per-occurrence trigger basis, while the reinsurance protection will run across a four-year period from December 1st.

As we’ve previously explained, this Nature Coast Re Series 2026-2 issuance will cover losses in the widest range of US states of any cat bond in SafePoint’s history, supporting the insurer’s continued expansion and growth into new locations.

What was initially a $100 million tranche of Series 2026-2 Class AA notes were then increased to $300 million, which is where the offering was finalised.

The Class AA notes come with an initial base expected loss of 0.73% and were first offered to cat bond 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 were then eventually fixed at the lowest-end of 3.75%.

What was initially a $150 million tranche of Series 2026-2 Class A notes were first increased to $300 million, before they increased again to $350 million in size terms, which is where the offering was finalised, we are told.

The Class A notes have an initial base expected loss of 1.66% and were initially offered to cat bond 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 were then offered with a spread of 6.25%, which is where the notes eventually priced, so again at the low-end of the updated range.

This is a great result for SafePoint, as the company has managed to capitalise on investor appetite within the catastrophe bond market, in being able to secure meaningfully more reinsurance than initially sought, while also securing the coverage at attractive pricing.

It’s important to note that SafePoint also has another cat bond sponsorship in the works.

As we reported earlier this week, SafePoint is looking to secure $100 million of annual aggregate and industry-loss index triggered named storm protection through an Arthur Re Ltd. – Nature Coast Re 2026-3 catastrophe bond offering, that will provide retro reinsurance to the company’s captive reinsurer.

As a reminder, you can read all about this new Nature Coast Re Ltd. (Series 2026-2)  catastrophe bond and the Arthur Re Ltd. – Nature Coast Re 2026-3 issuance, as well as every cat bond deal ever issued in our extensive Artemis Deal Directory.