SafePoint’s $100m Nature Coast Re 2026-3 industry-loss cat bond price moves to upper-end

SafePoint continues to target $100 million of annual aggregate and industry-loss index triggered named storm protection through its Arthur Re Ltd. – Nature Coast Re 2026-3 catastrophe bond deal, but we’re told the price guidance for the notes on offer has moved towards the upper-end of the initial range.

As we’ve explained before, this is not the first time SafePoint Insurance Company has ventured to the catastrophe bond market to obtain securitized industry-loss warranty (ILW) type protection.

In December 2024, the expansive US primary insurer 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, which remains in-force until the end of 2028.

The target issuance size for this Arthur Re Ltd. – Nature Coast Re 2026-3 catastrophe bond for SafePoint remains unchanged we are told, with still $100 million of annual aggregate and industry-loss index triggered named storm protection being sought from the capital markets for SafePoint.

However, we’re told the price guidance has been updated and moved to the upper-end of initial guidance.

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

As we said in our first article on this transaction, the ceding company to this cat bond issuance is Pompano Re Ltd., a special purpose insurer (SPI) that SafePoint established back in 1999, which now acts as a captive reinsurer for the insurer and its reciprocal underwriting entities.

Arthur Re Ltd. continues to offer a $100 million tranche of Class A notes to cat bond investors on behalf of a segregated account named Nature Coast Re 2026-3.

These Nature Coast Re 2026-3 cat bond notes are designed to provide Pompano Re with a multi-year source of fully-collateralized US named storm retrocessional reinsurance protection from the capital markets. That protection will be on an annual aggregate and industry loss index trigger basis.

The notes will provide coverage across all 50 US states, along with DC and the US Virgin Islands. The protection will run 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.

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

These notes come with an initial attachment probability of 5.39% and an initial expected loss of 4.082% and were initially marketed to cat bond investors with price guidance for a spread of between 7.25% to 8%.

We understand that the price guidance has been updated and moved to 8%, so the upper-end of the initial range, which demonstrates that cat bond investors remain disciplined and seek risk-commensurate returns for this transaction.

SafePoint continues to utilise the catastrophe bond market throughout 2026. Back in February, the firm secured $250 million of indemnity protection from the Nature Coast Re Ltd. (Series 2026-1) cat bond.

Then, just last week, the company managed to secure its largest catastrophe bond yet, as the Nature Coast Re Ltd. (Series 2026-2) deal was priced, providing the firm an upsized $650 million source of collateralized reinsurance protection,

As a reminder, 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 extensive Artemis Deal Directory.