Slide secures its largest catastrophe bond yet, $250m Purple Re 2025-1

Florida-headquartered Slide Insurance Company has now successfully priced what will be its largest catastrophe bond yet, securing the targeted $250 million of named storm reinsurance through its new Purple Re Ltd. (Series 2025-1) transaction, Artemis has learned.

Tech-enabled property insurer Slide ventured back to the catastrophe bond market in early April with a $250 million target for this Purple Re 2025-1 deal.

As we then reported in our first update on the offering, the size target remained at $250 million for this latest cat bond from Slide, while the price guidance had been updated within the lower-halves of the initial ranges for both of the tranches of notes on offer.

Now, we’re told by sources that the offering has been successfully priced, securing Slide its largest cat bond in the Purple Re series to provide the company with the targeted $250 million of multi-year hurricane reinsurance protection.

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

Now priced, the $250 million of reinsurance protection this new Purple Re 2025-1 cat bond will provide once settled, is set to benefit both Slide Insurance Company and its Pawtucket Insurance Company subsidiary with fully-collateralized named storm reinsurance protection on an indemnity and per-occurrence basis, across the states of Florida and South Carolina to begin, for a three-year term from June 1st, with maturity scheduled for early June 2028.

The $125 million of Series 2025-1 Class A tranche of notes come with an initial base expected loss of 1.04%. They were initially offered to cat bond investors with price guidance in a range from 7% to 7.75%, but have now been priced to pay investors a spread of 7.25%, so in the lower-half of guidance.

The $125 million tranche of Class B Series 2025-1 notes come with an initial base expected loss of 1.24%. They were first offered to cat bond investors with price guidance in a range from 7.5% to 8.25%, and we’re told have now been priced to pay investors a spread of 7.75%, so again in the lower-half of the initial range.

As a result, Slide has secured its largest catastrophe bond yet with pricing below the initial mid-points of guidance, another strong execution for a cat bond sponsor this year.

This is Slide’s fourth catastrophe bond under the Purple Re program and with all previous three issues still in-force for the coming wind season as well, it means Slide will benefit from $660 million of cat bond backed reinsurance for the 2025 hurricane season.

You can read all about this new Purple Re Ltd. (Series 2025-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.