Ocean Harbor sponsoring debut $75m Oceanside Re 2025-1 catastrophe bond

Ocean Harbor Insurance Group has entered the catastrophe bond market as a first-time sponsor and is seeking $75 million in collateralized multi-year catastrophe reinsurance protection from a debut Oceanside Re Ltd. (Series 2025-1) issuance, Artemis has learned.

Ocean Harbor Insurance Group, through its Ocean Harbor Casualty Insurance Company, underwrites home and auto insurance business across Northeast, Southeast, Mid Atlantic and Gulf states of the US, and has a focus on harder to insurer areas such as the coast.

For its debut catastrophe bond, the company has established Oceanside Re Ltd. in Bermuda, which will be registered as a special purpose insurer (SPI), for the issuance of series of cat bond notes, Artemis has learned from sources.

We understand that this debut catastrophe bond from Ocean Harbor, is designed to provide multi-year and fully-collateralized reinsurance to protect its Ocean Harbor Casualty Insurance Company entity and in future any subsidiaries that are added to the coverage.

Oceanside Re Ltd. is set to offer a $75 million Series 2025-1 Class A tranche of notes to investors, that will be sold and the proceeds used to furnish collateral to support a reinsurance agreement between the issuer and Ocean Harbor.

That reinsurance agreement will provide Ocean Harbor Insurance with a three year source of catastrophe reinsurance covering named storm and severe weather risks in the state of New York running to the end of May 2028, we understand.

The reinsurance protection will be structured on a per-occurrence basis and using an indemnity trigger, we are also told.

Sources said that the reinsurance coverage would have an attachment point at $50 million of losses and cover a share up to $150 million.

The $75 million of Series 2025-1 Class A notes that Oceanside Re is offering to investors come with an initial attachment probability of 4.9%, an initial expected loss of 3.102% and are being offered with price guidance in a range from 6% to 6.5%, we are told.

It’s encouraging to see another first-time sponsor in the catastrophe bond market in 2025, as the market needs to continue to attract more sponsors to keep the pipeline flowing and continues its growth.

You can read all about this new Oceanside Re Ltd. (Series 2025-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.