Slide returns for third & largest yet $150m Purple Re 2024-1 cat bond

Slide Insurance Company is back in the catastrophe bond market for what will be its third time, seeking what could be its largest issuance as it targets $150 million in named storm reinsurance through this Purple Re Ltd. (Series 2024-1) transaction.

Slide Insurance Company, a full-stack homeowners property insurtech founded by former Heritage CEO Bruce Lucas, sponsored its first catastrophe bond in April 2023, securing $100 million of named storm reinsurance, then a second in July 2023, again securing $100 million named storm deal.

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

For its third cat bond, Slide is looking to bring even more capital markets backed protection into its reinsurance tower, with an initial target of $150 million for this Purple Re 2024-1 deal.

Slide has been expanding its portfolio of homeowners property risk in hurricane exposed states, so needs an increasingly large reinsurance tower to support that exposure growth.

Bermuda based special purpose insurer (SPI) Purple Re Ltd. will look to issue a single tranche of Series 2024-1 Class A notes, that will be sold to investors to collateralize the reinsurance agreement with Slide.

The reinsurance will protect Slide over a three-year term from June 1st this year to the end of May 2027, we are told, while the covered peril is again named storm risks and the covered area the same as the previous Purple Re cat bonds, being Florida and South Carolina to begin.

The $150 million of notes to be issued will provide Slide with fully-collateralized named storm reinsurance on an indemnity and per-occurrence basis.

The Class A notes would attach their coverage at $505 million of losses to Slide, covering a share of losses to $805 million, but we understand they inure to reinsurance and FHCF coverage beneath, so the effective attachment point could be as high as $1.42 billion of loss to Slide.

With that, these 2024-1 Purple Re cat bond notes will sit above the two series of notes issued in 2023, we are told.

The $150 million of Class A notes come with an initial attachment point of 1.23%, an initial base expected loss of 1.06% and are being offered to cat bond investors with spread price guidance ranging from 8.75% to 9.5%, sources said.

It’s great to see Slide looking to continue building out the upper layers of its reinsurance tower with the help of the catastrophe bond market, which is set to become an increasingly important source of protection as the insurer continues on its growth path.

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.