Florida Peninsula Insurance Company has returned to the catastrophe bond market for its second sponsorship, this time seeking what would be its largest yet, with a target to secure $175 million or more in named storm reinsurance from this cat bond deal, Artemis has learned.A year ago, Florida Peninsula secured an upsized $150 million of Florida named storm reinsurance from its debut catastrophe bond deal, the Palm Re Ltd.(Series 2024-1) issuance.Now, we’re told the company is back and this time with a $175 million target from the start, as Florida Peninsula looks to more deeply embed the cat bond market’s coverage within its reinsurance tower.

We understand that Florida Peninsula Insurance Company, a specialist property underwriter in the state, is seeking protection for itself and its subsidiaries Edison Insurance Company and the Ovation Home Insurance Exchange with its second catastrophe bond.Palm Re Ltd., a Bermuda based special purpose insurer (SPI), will offer a single tranche of Series 2025-1 Class A notes, that are designed to provide the company with indemnity based Florida named storm reinsurance on a per-occurrence basis and over a three year term running from June 1st.The $175 million of Palm Re Series 2025-1 Class A cat bond notes would attach their coverage at $1.045 billion of losses to the ceding companies and protect a share of losses up to exhaustion at $1.445 billion, we are told.

The Class A notes will come with an initial attachment probability of 2.08%, an initial base expected loss of 1.8% and the cat bond is being offered to investors with spread price guidance in a range from 8.25% to 9%, sources explained.We’re told this new Palm Re 2025-1 catastrophe bond will see its protection sitting above last year’s 2024-1 issuance in the Florida Peninsula reinsurance tower this year.The Palm Re 2024-1 notes are said to have been reset to attach at $745 million of losses, providing 50% of coverage across a $300 million layer beneath the new Palm Re 2025-1 cat bond notes.

It’s encouraging to see another Florida based cat bond sponsor looking to layer more catastrophe bond backed reinsurance protection within its reinsurance tower this year.You can read all about this new catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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