Florida Peninsula now targets upsized $150m Palm Re cat bond at lower pricing

Florida Peninsula Insurance Company, one of the latest first time sponsors to enter the catastrophe bond market, is now seeking an upsized up to $150 million of named storm reinsurance from its debut Palm Re Ltd. (Series 2024-1) cat bond deal.

Florida Peninsula Insurance Company ventured into the catastrophe bond market for its debut issuance just over a fortnight ago, as we reported.

Initially, the Florida specialist insurers target was to secure $100 million in collateralized and multi-year named storm reinsurance for its own balance-sheet and also that of its subsidiary Edison Insurance Company with this Palm Re 2024-1 cat bond.

Now, sources have told us the target size is now for up to $150 million of reinsurance to be secured, while at the same time we’re told the price guidance has been lowered.

The reinsurance protection from this Palm Re cat bond will provide Florida Peninsula and Edison Insurance with protection for named storm losses in the state of Florida, on a per-occurrence and indemnity trigger basis across a three-year term, from June 1st 2024, through May 31st 2027.

The now up to $150 million of Palm Re Series 2024-1 Class A cat bond notes come with an initial base expected loss of 1.78% and were first offered to investors with spread price guidance in a range from 10.25% to 11%.

We are now told that price guidance has fallen, with an updated range of 9.75% to 10.25% being offered.

So, this looks set to be another example of a first time cat bond sponsor achieving strong execution, with both an upsizing and a price drop looking likely for Florida Peninsula’s debut cat bond deal.

You can read all about this new Palm Re Ltd. (Series 2024-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.