Slide prices Purple Re cat bond upsized by 40%, for $210m of reinsurance

Full-stack homeowners property insurtech Slide has now successfully priced its latest catastrophe bond, securing the 40% upsized target so that the new Purple Re Ltd. (Series 2024-1) transaction will provide the company with $210 million of named storm reinsurance.

It is Slide’s largest catastrophe bond to-date, with this third Purple Re issuance helping the carrier to further build-out its reinsurance tower with capacity from the capital markets, to support its rapid growth.

As well as securing its third cat bond to provide 40% more in fully-collateralized reinsurance than it had initially targeted, Slide also secured this latest cat bond coverage priced in the lower-half of initial spread guidance.

Read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.

Slide Insurance Company returned to the catastrophe bond market in March, aiming to sponsor this third Purple Re issuance.

When the transaction was launched to investors, Slide had an initial target to secure $150 million of collateralized property catastrophe reinsurance from this deal.

As we reported yesterday, the target size was then raised by 40% to as much as $210 million.

We’re now told that the upper-target for size was achieved, with this Purple Re 2024-1 catastrophe bond set to be $210 million in size for Slide.

This new cat bond will now provide Slide with $210 million of fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis, over a three-year term from June 1st this year to the end of May 2027, for the states of Florida and South Carolina.

The now confirmed to be $210 million of Class A notes come with an initial base expected loss of 1.06% and were first offered to cat bond investors with spread price guidance ranging from 8.75% to 9.5%.

As we reported, the price guidance was updated and dropped to a new range of 8.75% to 9%, so within guidance but narrowed towards the low-end.

We are now told by our sources that the Purple Re 2024-1 Class A notes have been priced to pay investors a spread of 9%, so in the lower-half of initial guidance.

Slide has been expanding its portfolio of homeowners property risk in hurricane exposed states, so needs a larger reinsurance tower to support that exposure growth.

This latest Purple Re 2024-1 cat bond sees Slide bringing cat bonds higher into its reinsurance tower, with this deal sitting atop the 2023-1 and 2023-2 issues.

The $210 million of notes will now occupy the majority of a $300 million layer of the reinsurance tower, attaching at $1.42 billion of losses.

Read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.

You can read all about this new Purple Re Ltd. (Series 2024-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.