SafePoint seeks $100m aggregate named storm industry loss cover via Arthur Re cat bond platform

SafePoint, the expansive US primary insurer, is now seeking $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 its captive reinsurer, sources have said.

It’s not the first time SafePoint Insurance Company has looked to the catastrophe bond market for securitized industry-loss warranty (ILW) type protection.

Back in December 2024, SafePoint secured $200 million of state-weighted, annual aggregate and industry loss index trigger reinsurance through sponsorship of a Nature Coast Re Ltd. (Series 2025-1) cat bond.

That cat bond remains in-force until the end of 2028, but now SafePoint is looking to add more aggregate index-trigger protection to cover the risks of multi-named storm and hurricane events impacting its underwriting portfolios over the course of the coming years.

Remember that, SafePoint is also in the market with a now twice-upsized $650 million Nature Coast Re Ltd. (Series 2026-2) indemnity and per-occurrence cat bond, which we expect to price in the coming days.

So SafePoint is now in the market with two cat bond offerings at the same time, as it looks to build-out more capital markets backed reinsurance from tropical storms and hurricanes that affect the United States.

For this index triggered cat bond, SafePoint is utilising the Gallagher Re operated issuance structure, Arthur Re Ltd., a platform that the broker developed to make issuance of industry-loss index trigger cat bonds more cost effective and efficient.

For this cat bond issuance for Safepoint, Arthur Re Ltd. is offering what we’re told is currently mooted as a $100 million tranche of Class A notes to investors on behalf of a segregated account named Nature Coast Re 2026-3.

We understand that the ceding company to this cat bond issuance is actually Pompano Re Ltd., a special purpose insurer (SPI) that SafePoint established back in 1999 and that now acts as a captive reinsurer for the insurer and its reciprocal underwriting entities.

Pompano Re, while now being SafePoint’s main captive reinsurance entity, can also interface with capital markets sources of capacity as well, so it makes sense to see it used to intermediate between the issuer Arthur Re and the SafePoint entities for a catastrophe bond.

The Nature Coast Re 2026-3 cat bond notes from Arthur Re are designed to provide Pompano Re with a multi-year source of fully-collateralized US named storm retrocessional reinsurance from the capital markets.

That cover will cascade down to protect underwriting portfolios of the main SafePoint Insurance entity, as well as the Louisiana focused Cajun Underwriters Reciprocal Exchange entity, and the Florida homeowner and business owner focused Manatee Insurance Exchange.

That protection will be on an annual aggregate and industry loss index trigger basis, as we said. While the coverage is across all 50 states of the US, as well as DC and the US Virgin Islands and the term of protection will be across a roughly four year term to the end of November 2030, with annual aggregate risk periods that cover four hurricane seasons for the sponsor.

We understand that the single tranche of Class A Nature Coast Re 2026-3 notes will feature (note this is based on index values not ground-up reported industry losses) a franchise deductible of $40 million, an attachment point at $450 million and exhaustion at $650 million.

As we said, we’re told the target is for a $100 million offering of the Class A Nature Coast Re 2026-3 notes, which we understand will come with an initial attachment probability of 5.39% and initial expected loss of 4.082%, while the price guidance is for a spread in a range from 7.25% to 8%.

SafePoint is demonstrating a strong appetite for catastrophe bond coverage in 2026, having secured $250 million of indemnity protection from the Nature Coast Re Ltd. (Series 2026-1) cat bond in February, with a $650 million target for the yet to price Nature Coast Re Ltd. (Series 2026-2) deal that is still in the market and now this new aggregate industry-loss trigger cat bond deal as well.

You can read all about this new Arthur Re Ltd. – Nature Coast Re 2026-3 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.