Artemis has discovered that Safety First Insurance coverage Firm, a specialist Florida home householders insurer, has now raised its goal for named storm reinsurance from its newest go to to the disaster bond market, now aiming to safe as much as $250 million of safety from its new First Coast Re IV Ltd. (Series 2025-1) issuance, the corporate’s sixth disaster bond.
Safety First has been utilising disaster bonds to entry capital markets sources of fully-collateralized reinsurance capability since its debut First Coast Re cat bond in 2016.
The insurer has sponsored 5 First Coast Re cat bonds in whole, three issued out of Bermuda and two from Singapore.
As we reported in late January, Safety First was again within the disaster bond market looking for $210 million in named storm reinsurance with this new First Coast Re deal.
This new First Coast Re IV Ltd. (Series 2025-1) cat bond is being issued utilizing Bermuda as a domicile once more and can develop into the sixth cat bond from Safety First we’ve got listed in our Deal Directory.
Particular goal insurance coverage firm First Coast Re IV Ltd. will challenge two tranches of Sequence 2025-1 notes, that will likely be offered to traders and the proceeds used to collateralize safety for the sponsor.
The Class A tranche of Sequence 2025-1 notes had been initially $60 million in measurement, however are actually being pitched at an upsized vary of between $60 million and $100 million, we’re advised.
The Class A notes have an preliminary attachment likelihood of 1.41%, an preliminary base anticipated lack of 1.30% and so they had been initially being supplied to cat bond funds and traders with unfold value steerage in a spread from 7.75% to eight.5%. That value steerage has now dropped, with a brand new tighter vary of seven% to 7.75%.
Now we have additionally been advised that the dimensions steerage for the bigger $150 million Class B tranche of notes has not modified.
The tranche of Class B notes have an preliminary attachment likelihood of two.82%, an preliminary base anticipated lack of 2.25%, and so they had been initially being marketed with value steerage in a spread from 8.75% to 9.5%. That value steerage has now lowered, with a brand new tighter vary of 8% to eight.75%.
So, with its newest First Coast Re IV cat bond, Safety First seems to be concentrating on a significant upsizing, whereas looking for pricing on the backside ends of preliminary steerage and even decrease.
As a reminder, you’ll be able to learn all about this new First Coast Re IV Ltd. (Series 2025-1) disaster bond, in addition to particulars on over 1,000 different cat bond transactions within the intensive Artemis Deal Directory.
