Slide Insurance Company, the full-stack property insurtech company founded by Bruce Lucas in Florida, has successfully placed a $1.86 billion catastrophe reinsurance tower for 2024, of which some $410 million in collateralized reinsurance for the higher layers comes from the cat bond market, sourced by its three Purple Re issues.
Slide completed its latest and largest catastrophe bond placement back in April, securing $210 million of protection through the Purple Re Ltd. (Series 2024-1) catastrophe bond transaction.
After that, Slide CEO Bruce Lucas explained that the catastrophe bonds have helped his insurance company to secure roughly 70% of its reinsurance on a multi-year coverage basis, which will provide significant benefits in terms of ongoing certainty and renewals in future.
Now, Slide has completed its 2024 June reinsurance renewal, securing a $1.86 billion reinsurance program for the 2024 Atlantic hurricane season.
Slide’s reinsurance program is said to exceed all regulatory and rating agency requirements.
It protects Slide Insurance Company for losses up to to the 175-year return period, including coverage for all perils and third-event protection, the insurer explained.
“Slide’s oversubscribed reinsurance program underscores our commitment to delivering a stable solution to the Florida market,” explained Bruce Lucas, Founder and CEO of Slide.
He added, “We deeply appreciate our reinsurance partners’ ongoing support and are excited to continue growing and supporting Florida homeowners by providing a reliable property insurance option.”
Slide’s catastrophe bonds are stacked towards the upper-layers of its reinsurance tower, with the lowest attaching being the $100 million Purple Re 2023-1 issuance at $1.22 billion, then the $100 million Purple Re 2023-2 cat bond sitting above at an attachment of $1.32 billion and finally the most recent $210 million Purple Re 2024-1 cat bond occupying 70% of a layer above that, attaching at $1.42 billion.
As a result, the cat bond market would take a share of Slide’s financial exposure for any catastrophe loss events that eat into the reinsurance tower from $1.22 billion right the way up to a cat bond exhaustion point at $1.72 billion through the 2024 wind season.
Read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.
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