Slide’s new & largest cat bond makes reinsurance tower ~70% multi-year: CEO
Slide Insurance Company, the full-stack property insurtech company founded by Bruce Lucas in Florida, now counts roughly 70% of its reinsurance as being on a multi-year basis, thanks to the completion in recent days of its largest and $210 million Purple Re Ltd. (Series 2024-1) catastrophe bond transaction.
As Artemis has been reporting, Slide Insurance Company returned to the catastrophe bond market in March, aiming to secure at least $150 million of reinsurance with what is its third Purple Re cat bond issuance.
Eventually, the insurer priced its new Purple Re 2024-1 catastrophe bond at a 40% upsize to provide $210 million of reinsurance, while the notes priced to pay investors a spread of 9% which is in the lower-half of initial pricing guidance.
Read about all of Slide’s Purple Re catastrophe bonds in our extensive Deal Directory.
As a result, this is the biggest catastrophe bond yet from Slide and founder and CEO Bruce Lucas explained the importance of the capital markets being open for reinsurance protection.
“Financial solvency is a key focus, and our latest cat bond helps us to further protect our policyholders in their time of need,” Lucas explained.
Adding that, “We remain committed to securing multi-year reinsurance as a hedge against inflation and increased costs.”
This latest Purple Re 2024-1 cat bond provides Slide three years of per-occurrence and indemnity based named storm reinsurance for the states of Florida and South Carolina, on a fully-collateralized basis.
Importantly, Slide is building out its multi-year protection with the help of the capital markets and its Purple Re cat bond program.
The company now has $410 million in collateralized reinsurance from the cat bond market, sourced through the now three Purple Re issues.
CEO Lucas noted that, “With the addition of this cat bond, approximately 70% of our reinsurance is placed on a multi-year basis.”
As Slide grows and expands into states beyond its home of Florida, the company will benefit by locking in reinsurance at effiicent rates, something the catastrophe bond market is an ideal provider of.
This successful $210 million cat bond placement and now $410 million of multi-year catastrophe reinsurance, helps to position Slide well for the coming wind season and also gives the insurer a valuable head-start on completing its reinsurance renewal arrangements for the year.
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.
