Florida Peninsula Insurance coverage Firm, one of many newest first time sponsors to enter the disaster bond market, is now looking for an upsized as much as $150 million of named storm reinsurance from its debut Palm Re Ltd. (Series 2024-1) cat bond deal.
Florida Peninsula Insurance coverage Firm ventured into the disaster bond marketplace for its debut issuance simply over a fortnight in the past, as we reported.
Initially, the Florida specialist insurers goal was to safe $100 million in collateralized and multi-year named storm reinsurance for its personal balance-sheet and likewise that of its subsidiary Edison Insurance coverage Firm with this Palm Re 2024-1 cat bond.
Now, sources have advised us the goal measurement is now for as much as $150 million of reinsurance to be secured, whereas on the identical time we’re advised the value steering has been lowered.
The reinsurance safety from this Palm Re cat bond will present Florida Peninsula and Edison Insurance coverage with safety for named storm losses within the state of Florida, on a per-occurrence and indemnity set off foundation throughout a three-year time period, from June 1st 2024, by Could thirty first 2027.
The now as much as $150 million of Palm Re Sequence 2024-1 Class A cat bond notes include an preliminary base anticipated lack of 1.78% and had been first provided to buyers with unfold value steering in a spread from 10.25% to 11%.
We are actually advised that value steering has fallen, with an up to date vary of 9.75% to 10.25% being provided.
So, this appears set to be one other instance of a primary time cat bond sponsor attaining sturdy execution, with each an upsizing and a value drop wanting doubtless for Florida Peninsula’s debut cat bond deal.
You may learn all about this new Palm Re Ltd. (Series 2024-1) disaster bond transaction and each different cat bond ever issued in our Artemis Deal Directory.
