Slide gets second $100m Purple Re cat bond at reduced pricing

Slide Insurance Company has now finalised the pricing for its second catastrophe bond, with the $100 million Purple Re Ltd. (Series 2023-2) transaction secured with a spread roughly 9% below the initial mid-point of guidance.

It’s a strong result for the second cat bond sponsorship from Slide, the full-stack homeowners property insurtech founded by well-known industry executive Bruce Lucas.

The company sponsored its debut $100 million Purple Re 2023-1 cat bond in April, securing that layer of reinsurance coverage priced just slightly above the mid-point of initial price guidance.

But, with this second Purple Re cat bond, Slide has secured the reinsurance at a reduced price, with the spread now finalised below the initially marketed range, to deliver cost-effective protection to the growing carrier.

So, with this Purple Re 2023-2 cat bond, Slide has now secured an additional $100 million in named storm reinsurance protection from the capital markets.

The notes will cover Slide against losses from named storm losses in Florida and South Carolina on an indemnity trigger and per-occurrence basis, across a just under three-year term.

The Purple Re 2023-2 notes occupy a $100 million layer at the top of Slide’s reinsurance tower, sitting directly above the 2023-1 cat bond.

As a result, Slide has now filled out the top $200 million of its reinsurance tower with the support of capital market and ILS fund investors.

The $100 million of Purple Re Series 2023-2 Class A notes have an initial base expected loss of 1.05%, attaching on a ground-up basis at just over $850 million of losses to the insurer.

These notes were first offered to ILS investors with spread price guidance in a range from 10.5% to 11.5%, but as we reported earlier this week that range was lowered to 10% to 11%.

We’re now told that the notes have been priced and Slide will pay a spread of 10% for the $100 million of Purple Re 2023-2 cat bond protection.

That’s a just slightly over 9% reduction in price from the mid-point of the initial price guidance range.

As we reported recently, Slide is one of the insurers scheduled to takeout property insurance policies from Florida Citizens this summer, which will grow its Florida exposure.

It’s encouraging to see Slide looking to the cat bond market and ILS investors to help it bolster its reinsurance support in preparation for the carriers continued expansion.

You can read all about this new Purple Re Ltd. (Series 2023-2) catastrophe bond and over 900 other cat bond transactions in our extensive Artemis Deal Directory.