Florida’s Citizens Property Insurance Corporation has now secured its one-third upsized target for reinsurance protection from its new catastrophe bond sponsorship, while pricing the notes and the coverage at below-guidance pricing, sources have told Artemis.Florida Citizens returned to the catastrophe bond market in April, with an initial target to secure $450 million of named storm reinsurance protection from this new Everglades Re II 2026-1 cat bond deal., with from the initial $450 million to as much as $600 million of reinsurance limit then being sought by the residual market property insurer.At the same time, Florida Citizens was aiming to benefit from the strong execution being seen in cat bond issuance of late, with the price guidance lowered across each of the tranches of notes.

Now, we’ve learned that Florida Citizens has been successful and secured the one-third upsized $600 million of reinsurance limit from this Everglades Re II 2026-1 cat bond deal, while the notes have now been priced at below guidance levels.This will now become the seventeenth series of cat bond notes sponsored by Florida Citizens and the fifteenth to use the Everglades Re name, since the property insurer of last resort for Florida sponsored its first catastrophe bond issuance back in 2012..

With the details now finalised and the notes priced, once settled Florida Citizens will add $600 million of new catastrophe bond backed reinsurance limit to its reinsurance tower for 2026.As we explained before, as its reinsurance needs have declined alongside its steady reduction in policies-in-force and exposure.Florida Citizens intends to have $1.525 billion of cat bond protection from 2025 issuances in-force for 2026 as well, so $2.125 billion of total cat bond coverage.

Which means, with a projected reinsurance need of around $2.8 billion the traditional market component may be $675 million, data seen by Artemis suggests.Even after , Florida Citizens continues to keep this market as its core reinsurance provider for another hurricane season.With this new issuance finalised, Everglades Re II Ltd.

will sell investors three tranches of Series 2026-1 cat bond notes to provide Florida Citizens with $600 million of multi-year annual aggregate named storm reinsurance covering the state of Florida, on an indemnity trigger basis, across a three year term and three risk periods.What was at first a $125 million tranche of Series 2026-1 Class A notes have been upsized to provide $175 million of reinsurance.The Class A notes have an initial base expected loss of 1.35% and were first offered to investors with spread price guidance in a range from 6% to 6.5%, which was later lowered to between 5.5% and 6%.

The final pricing is for a risk interest spread of 5.5% to be paid, so at the bottom of the reduced guidance range.What was at first a $150 million tranche of Series 2026-1 Class B notes were upsized to provide $200 million of reinsurance, we understand.The Class B notes have an initial base expected loss of 1.74% and were initially offered to investors with spread price guidance in a range from 7% to 7.5%, which was also revised down to between 6.5% and 7%.

We’re now told the final pricing was for a risk interest spread of 6.5%, so again the bottom of the reduced guidance.The final tranche of Series 2026-1 Class C notes was originally $175 million in size, but has been successfully increased to provide Florida Citizens with $225 million of reinsurance, sources said.The Class C notes have an initial base expected loss of 2.41% and were first offered to investors with spread price guidance in a range from 8.75% to 9.25%, which was again lowered to between 8.25% and 8.75%.

The final pricing for these notes was for a risk interest spread of 8.25%, once again the lowest-end of already reduced guidance.Florida Citizens has received very strong support again from the catastrophe bond investor base, allowing it to secure its maximum target for reinsurance from the cat bond market at much better than anticipated pricing.The cat bond market maintains its role as the largest provider of reinsurance to this long-standing sponsor.

While further reductions in Florida Citizens exposure base are possible over the coming years, it seems likely the catastrophe bond market will continue to be a key supporter of its risk transfer needs.You can read all about this new catastrophe bond being sponsored by Florida’s Citizens Property Insurance Corporation and view details of more than 1,000 other cat bond issuances in the extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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