Slide secures its largest $210m cat bond; multi-year reinsurance tower hits ~70%
Slide Insurance Company has completed its largest and $210 million Purple Re (Series 2024-1) catastrophe bond transaction, expanding its collateralised reinsurance protection for 2024 against named storms and hurricanes in Florida and South Carolina.
Purple Re Series 2024-1 represents Slide's largest cat bond to date. It provides 40% more in fully collateralised reinsurance than the initial target of $150 million and is priced in the lower half of initial spread guidance at 9%.
The cat bond secures an additional $210 million for Slide to expand its reinsurance protection for 2024. Last year, Slide debuted its Purple Re Series 2023-1 and Series 2023-2 cat bonds, generating $200 million in reinsurance protection.
The reinsurance protection from Purple Re will be provided within Florida and South Carolina on an indemnity and per-occurrence basis, over a three-year term from June 1,2024, through May 31, 2027.
Bruce Lucas, founder and CEO of Slide Insurance, said: “Financial solvency is a key focus, and our latest cat bond helps us to further protect our policyholders in their time of need. We remain committed to securing multi-year reinsurance as a hedge against inflation and increased costs. With the addition of this cat bond, approximately 70% of our reinsurance is placed on a multi-year basis.”
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