Slide CEO pleased to have completed second cat bond at reduced pricing
The Chief Executive Officer (CEO) of full-stack homeowners property insurtech, Slide Insurance Company, is pleased that the company was able to complete the issuance of its second catastrophe bond at reduced pricing, as the firm strengthened protection for policyholders during the Atlantic hurricane season.
After sponsoring its first cat bond, the $100 million Purple Re Ltd. (Series 2023-1), in April of this year, Slide returned to the market in Q3 with another $100 million transaction, Purple Re Ltd. (Series 2023-2), which also provides the carrier with Florida and South Carolina named storm reinsurance protection.
As we wrote previously, the latest transaction was secured with a spread roughly 9% below the mid-point of initial price guidance, delivering cost-effective coverage for the expanding insurer led by former Heritage CEO Bruce Lucas.
Commenting on the transaction, Lucas said, “Slide is committed to building a strong and sustainable future and our first two catastrophe bonds have strengthened our ability to protect policyholders at the height of the 2023 Atlantic Hurricane season.
“We are pleased to have finalized our second cat bond at reduced pricing while landing additional reinsurance capacity from investors.”
The second Purple Re transaction sponsored by Slide protects the company to the 200-year return period, which is well above both rating agency and regulatory mandates.
As the deal listing in the Artemis Deal Directory shows, the single tranche of Series 2023-2 Class A notes provides Slide with reinsurance protection on an indemnity trigger and per-occurrence basis. The transaction is scheduled for maturity on June 5th, 2026.
As the insurer expands, Slide has been taking steps to enhance its financial stability in 2023. Alongside the two cat bonds, the firm also secured $35 million in additional capital, which was covered previously on our reinsurance-focused sister publication, Reinsurance News.
Prior to this, Slide successfully completed its catastrophe reinsurance renewal placement, citing strong support from the market.
You can read all about this new Purple Re Ltd. (Series 2023-2) catastrophe bond and over 900 other cat bond transactions in our extensive Artemis Deal Directory.
