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Xactanalysis Insights and PCS

Security First targets up to $200m for First Coast Re cat bond, price drops


Florida’s Security First Insurance Company looks set to capitalise on attractive catastrophe bond market issuance conditions with its First Coast Re Ltd. (Series 2017-1), as the target size for the transaction increased while the price guidance has been lowered, we understand.

At launch, Security First was targeting $150 million of fully-collateralized reinsurance protection from the capital markets with this its second cat bond transaction.

Now, we understand that the insurer has lifted its ambitions and is targeting between $150 million to $200 million from the deal.

Once complete the First Coast Re 2017-1 transaction will provide Security First with reinsurance protection against losses from named storms and severe thunderstorms in the state of Florida, over a four-year term, on an indemnity trigger and per-occurrence basis.

At the same time as upping its target coverage amount the pricing on this cat bond has dropped for Security First.

Once again reflecting the attractive cat bond market issuance conditions this deal has seen its coupon price guidance tumble, with the initial range of 4.5% to 5% now having been lowered and narrowed to 4.25% to 4.5%.

With the expected loss initially set at 1.75% that pricing target is aligned with other recent issues, on a multiple basis.

We’ll update you as and when the First Coast Re Ltd. (Series 2017-1) cat bond completes. You can read about this and every other catastrophe bond transaction in the Artemis Deal Directory.

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