Slide looks to upsize Purple Re 2024-1 cat bond 40% to $210m

Full-stack homeowners property insurtech Slide is now targeting a 40% increase in the size of its latest catastrophe bond, with the Purple Re Ltd. (Series 2024-1) transaction now expected to reach $210 million.

At the same time, we understand that the price guidance for these cat bond notes has been narrowed towards the lower-end of the initial range.

Slide Insurance Company returned to the catastrophe bond market in March, aiming to sponsor what will be its third Purple Re issuance.

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

The transaction was launched with an initial target to secure $150 million of collateralized property catastrophe reinsurance for the insurtech carrier.

We’re now told that the target size has been raised by 40% to $210 million, which will make this Slide’s largest cat bond to-date by a margin over the two $100 million Purple Re deals it has previously sponsored.

Which can only be beneficial, as 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 new cat bond will provide Slide with 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 $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%.

We’re now told that the price guidance has been lowered to 8.75% to 9%, so within guidance but narrowed towards the low-end.

Slide’s CEO and founder Bruce Lucas is following form from his days as CEO of Heritage, where he made catastrophe bonds a significant component of that carriers reinsurance arrangements during his time at the firm.

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.