The insurtech sponsors second catastrophe bond of the year to protect against named storms and hurricanes in South Carolina and Florida
The bond, named Purple Re Ltd. (Series 2023-2), marks Slide’s second cat bond this year, following the initial Purple Re (Series 2023-1) transaction in April.
By issuing the Purple Re cat bond, Slide has expanded its named storm and hurricane reinsurance protection in Florida and South Carolina. This additional coverage extends the company’s protection to a 200-year return period, surpassing the requirements set by rating agencies and regulators.
Bruce Lucas, Founder and CEO of Slide Insurance (pictured), said the company’s commitment to building a resilient future and highlighted the significance of the two catastrophe bonds in safeguarding policyholders during the 2023 Atlantic Hurricane season. Lucas expressed satisfaction with the reduced pricing of the second cat bond and the increased reinsurance capacity secured from investors.
The Purple Re Ltd. bond will consist of a single tranche of Series 2023-2 Class A notes, which will provide coverage for named storm losses in Florida and South Carolina. The reinsurance protection offered by this cat bond will be based on an indemnity trigger and per-occurrence basis, with maturity set for June 5, 2026.
In addition to the cat bond issuance, Slide Insurance secured an additional $35 million in capital through a senior credit facility with Regions Bank in June. This funding further supports the insurer’s financial stability and growth plans. Earlier in May, Slide successfully completed its reinsurance renewal process as part of its ongoing efforts to ensure a strong and secure financial position.
