Florida Peninsula Insurance Company has now finalised details for its debut and upsized $150 million named storm reinsurance catastrophe bond deal, , with the notes pricing at a level almost 11% below the mid-point of initial guidance.Florida Peninsula Insurance Company began its first foray in the catastrophe bond market for its debut issuance just over a fortnight ago, as we reported.At first, the target was to secure just $100 million of named storm reinsurance from the first Palm Re cat bond deal, but as we then also wrote with up to $150 million of coverage then being sought and at the same time the price guidance was lowered for the first time.In our next update on this Palm Re cat bond, .

Now, we’re told that all details have been finalised, with the Palm Re 2024-1 catastrophe bond issuance now confirmed at the upsized $150 million size, while pricing will be finalised at the bottom end of the twice reduced guidance ranges.The $150 million of reinsurance protection from this Palm Re cat bond will provide Florida Peninsula and subsidiary Edison Insurance named storm cover for the state of Florida, on a per-occurrence and indemnity trigger basis across a three-year term, from June 1st 2024, through May 31st 2027.The $150 million of Palm Re Series 2024-1 Class A cat bond notes come with an initial base expected loss of 1.78%.

The notes were first offered to investors with spread price guidance in a range from 10.25% to 11%, but as we then reported that price guidance was lowered to an updated range of 9.75% to 10.25% and then in our second report we said that the last price range on offer was for a spread of between 9.5% and 9.75% to be paid to investors.We are now told by sources that the pricing has been finalised at the lowest end of the twice reduced guidance, with the $150 million of Palm Re 2024-1 Class A notes set to pay investors a spread of 9.5%.Which represents a more than 1.1% drop in the actual spread while the deal was marketing and the final price is almost 11% below the mid-point of the initial guidance.

As a result, for its debut catastrophe bond, Florida Peninsula will secure 50% more in reinsurance than the initial target, priced around 11% below the mid-point of initial spread guidance.Another strong result for a first time cat bond sponsor, but still offering investors a multiple-at-market of 5.34 times the expected loss.You can read all about this new catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory..

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