SafePoint secures 50% upsized $150m Nature Coast Re 2025-2 cat bond priced at low-end

SafePoint Insurance Company has now successfully priced its new Nature Coast Re Ltd. (Series 2025-2) catastrophe bond, we are told, securing the 50% upsized $150 million in reinsurance protection sought from capital market investors, while the notes were priced at the bottom-end of initial guidance.

When we first covered this new cat bond from SafePoint back towards the start of March, the company was initially seeking $100 million in collateralized catastrophe reinsurance on an indemnity and per-occurrence basis from the deal.

Then, just last week, we reported that the target size had been raised by 50%, while at the same time the price guidance for this Nature Coast Re 2025-2 cat bond had fallen to the bottom of the initial range.

Now, Artemis has learned that the size of this issuance has been successfully increased to the higher target, to provide SafePoint $150 million of reinsurance, while the pricing has now been finalised for the notes at the bottom-end of initial guidance.

For SafePoint, this marks its fourth catastrophe bond sponsored under the Nature Coast Re program and its eighth cat bond sponsorship in total. Read about all of SafePoint’s cat bonds in our extensive Deal Directory.

Nature Coast Re Ltd. will now issue a $150 million single Class A tranche of Series 2025-2 notes.

As we have previously reported, the notes will protect SafePoint Insurance Company itself and its reciprocal exchanges, the solely Louisiana focused entity Cajun Underwriters Reciprocal Exchange, and the Florida homeowner and business owner focused Manatee Insurance Exchange, with collateralized reinsurance protection for losses from named storms across the states of Florida, Louisiana, Alabama, Mississippi, and Texas, on an indemnity and per-occurrence trigger basis and across a four-year period from completion of the issuance.

The now confirmed $150 million tranche of Series 2025-2 Class A notes come with an initial base expected loss of 1.58% and were first offered to investors with spread price guidance in a range from 9.75% to 10.75%.

The price guidance was then lowered to the bottom of that range, for a spread of 9.75%, which we understand has now been finalised, and is the level of spread investors will receive for allocating to this new cat bond.

This is a good result for SafePoint Insurance Company, as the organisation has benefited from the strong price execution in the cat bond market to secure a meaningful $150 million in collateralized catastrophe reinsurance protection, at attractive pricing.

As a reminder, you can read all about this new Nature Coast Re Ltd. (Series 2025-2) catastrophe bond from Safepoint as well as details on every other cat bond ever issued in the extensive Artemis Deal Directory.