Floridian InsurTech Slide has narrowed the pricing guidance on its $100mn debut cat bond Purple Re towards the top of its initial range, Trading Risk understands.
The guidance is now 12.25%-12.50%, compared to an initial range of 11.50%-12.50%.
This gives a 7.9x multiple of the bond’s 1.57% modelled expected loss, at the new mid-point, similar to the 8.3x multiple on Kin’s latest cat bond.
The Purple Re bond will provide named storm cover in Florida and South Carolina although could be expanded to other US states after its first annual reset. The three year bond will cover two hurricane seasons of risk.
Slide’s bond attaches at $315mn, with an exhaustion level of $415mn for the first annual risk period while for each subsequent annual risk period an updated exhaustion level will apply.
Slide has been growing its Florida book, having recently acquired the majority of United Insurance Holdings’ (UPC) outstanding policies in the state and obtained exclusive renewal rights on another chunk of UPC’s book.
The deal was part of UPC’s approved run-off plan.
Security First is expecting to pay a high single digit coupon for its $100mn First Coast Re bond, with Kin having raised the same sum from its latest Hestia Re bond and Florida Citizens securing $500mn from a cat bond protecting its inland personal lines book, offering an 11% coupon.
The sole structuring agent and sole bookrunner on the Purple Re bond is GC Securities.
The modeller is AIR (Verisk).
Slide is one of several Floridians that have tapped the cat bond market before hurricane season this year.
