Slide Insurance has successfully set the pricing for its $210 million Purple Re Ltd. (Series 2024-1) catastrophe bond, marking the company’s largest cat bond issuance to date.
The bond exceeds its original target by 40%, initially aimed at $150 million, and has been priced favorably in the lower half of the initial spread guidance at a rate of 9%.
The issuance of the Purple Re Ltd. cat bond provides Slide Insurance with an additional $210 million in fully collateralized reinsurance to bolster its coverage against named storms and hurricanes in Florida and South Carolina.
Bruce Lucas, the founder and CEO of Slide Insurance, emphasized the importance of financial stability through reinsurance, especially in supporting policyholders during crises.
“Financial solvency is a key focus, and our latest cat bond helps us to further protect our policyholders in their time of need,” Lucas said.
He further highlighted the company’s strategy of securing multi-year reinsurance commitments to safeguard against inflation and rising costs.
“With the addition of this cat bond, approximately 70% of our reinsurance is placed on a multi-year basis,” he said.
The announcement follows Slide’s introduction of its Purple Re Ltd. Series in the previous year, which included the Series 2023-1 and Series 2023-2 cat bonds, collectively amounting to $200 million in reinsurance protection.
The coverage from the newly issued Purple Re 2024-1 cat bond will span a three-year term, from June 1, 2024, to May 31, 2027, providing indemnity and pre-occurrence-based reinsurance protection within Florida and South Carolina.
Slide Insurance, headquartered in Tampa, Florida, integrates advanced technologies such as artificial intelligence and big data to enhance efficiency across the insurance lifecycle. Founded by Bruce and Shannon Lucas, Slide began its operations in February 2022 and is a leading player in the property and casualty insurance sector, serving over 249,000 policyholders.
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