Slide Insurance returns to ILS market for $100 storm cat bond
US-based Slide Insurance has returned to the ILS market for its second catastrophe bond of the year to boost its reinsurance protection against named storms and hurricanes in Florida and South Carolina. The insurtech has secured $100 million in cover from the new cat bond, Purple Re (Series 2023-2).
The latest cat bond follows the debut of its $100 million Purple Re 2023-1 in April 2023. Additionally, Slide secured $35 million in capital through a senior credit facility with Regions Bank in June. Prior to that in May, the insurtech placed an oversubscribed reinsurance programme.
Purple Re will issue a single tranche of Series 2023-2 Class A notes, which will be exposed to named storm losses in Florida and South Carolina. The reinsurance protection from the new cat bond will be provided on an indemnity trigger and per-occurrence basis, with maturity slated for June 5, 2026.
The additional cat bond protects Slide up to the 200-year return period, “well above rating agency and regulatory mandates”, the company claims.
Bruce Lucas, founder and CEO of Slide Insurance, said: “Slide is committed to building a strong and sustainable future and our first two catastrophe bonds have strengthened our ability to protect policyholders at the height of the 2023 Atlantic Hurricane season. We are pleased to have finalised our second cat bond at reduced pricing while landing additional reinsurance capacity from investors.”
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