Florida Peninsula Insurance Company is aiming to upsize its second catastrophe bond issuance, with its target for the Palm Re Ltd. (Series 2025-1) issuance now set at between $200 million and as much as $250 million of named storm reinsurance protection, Artemis has learned.
At the same time, we understand from sources that the price guidance has fallen for the tranche of notes being offered for this Palm Re 2025-1 cat bond deal.A year ago, Florida Peninsula secured an upsized $150 million of Florida named storm reinsurance from its debut catastrophe bond deal, the Palm Re Ltd. (Series 2024-1) issuance.
Florida Peninsula returned to the cat bond market earlier this month for its second sponsorship, initially looking to secure $175 million or more in named storm reinsurance from this Palm Re Ltd. (Series 2025-1) deal.
Now we’re told the insurers’ appetite for reinsurance has increased, with Florida Peninsula now said to be targeting between $200 million and $250 million of protection from this Palm Re 2025-1 catastrophe bond.
Florida Peninsula Insurance Company, a specialist property underwriter in the state, is seeking protection for itself and its subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange with its second catastrophe bond.
Palm Re Ltd., a Bermuda based special purpose insurer (SPI), will offer a single tranche of Series 2025-1 Class A notes, that are designed to provide the company with indemnity based Florida named storm reinsurance on a per-occurrence basis and over a three year term running from June 1st.
The Class A tranche of notes, which have an initial base expected loss of 1.8%, are now targeted to provide between $200 million and $250 million of protection.
They were first offered to cat bond investors with price guidance in a range from 8.25% to 9%, but we’re now told the guidance has fallen to between 7.75% to 8.25%.
As we previously reported, this new Palm Re 2025-1 catastrophe bond will see its protection sitting above last year’s 2024-1 issuance in the Florida Peninsula reinsurance tower this year.
It’s particularly encouraging to see Florida Peninsula looking to expand on its ambitions for its second catastrophe bond. We’ll update you when the final size of the Palm Re 2025-1 catastrophe bond is available.
As a reminder, you can read all about this new Palm Re Ltd. (Series 2025-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.
