Slide Insurance has completed pricing for its US$250 million Purple Re Ltd. (Series 2025-1) catastrophe bond, marking its fourth and largest insurance-linked securities (ILS) transaction to date.
The latest issuance surpasses Slide’s previous largest cat bond deal by US$40 million. The Series 2025-1 bond is structured into two fully collateralized tranches of US$125 million each.
The Class A notes priced at 7.25%, while the Class B notes priced at 7.75%, both coming in within the lower half of their respective initial spread guidance.
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Proceeds from the transaction will be used to strengthen Slide’s reinsurance coverage against named storms and hurricanes in Florida and South Carolina. The bond provides indemnity-based, per occurrence protection and will cover a three-year term running from June 1, 2025, to May 31, 2028.
Bruce Lucas, founder and CEO of Slide Insurance, said the completion of the cat bond offering enhances the company’s ability to protect its policyholders.
“Securing cat bonds over the past couple of years and building our reinsurance tower has proven to be a prudent source of multi-year reinsurance protection for Slide. With the successful completion of this offering, Slide has placed US$660 million of our reinsurance program in the ILS market,” he said.
The Purple Re 2025-1 transaction continues Slide’s strategy of building out a diversified and layered reinsurance structure amid a market environment marked by increased demand for risk transfer solutions.
Since its inception in 2023, Slide utilized the bond series to bolster its reinsurance coverage against named storms and hurricanes in Florida and South Carolina.
In April of that year, Slide introduced its first catastrophe bond, Purple Re Ltd. (Series 2023-1), securing US$100 million in reinsurance protection. This bond provided three years of fully collateralized coverage on an indemnity and per-occurrence basis.
Following this, in July, Slide issued a second catastrophe bond, Purple Re Ltd. (Series 2023-2), also securing US$100 million. This bond offered similar coverage terms and was priced at a 10% spread.
In April 2024, Slide expanded its program with the Purple Re Ltd. (Series 2024-1) catastrophe bond, initially targeting US$150 million but upsizing to US$210 million. This bond offered three-year coverage from June 1, 2024, to May 31, 2027, on an indemnity and per-occurrence basis.
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