Tampa-based Slide Insurance announced it has finalized a $250 million catastrophe bond through Purple Re Ltd., expanding Slide’s hurricane protection in Florida and South Carolina.
“Securing cat bonds over the past couple of years and building our reinsurance tower has proven to be a prudent source of multi-year reinsurance protection for Slide,” Slide CEO Bruce Lucas said in a news release.
“With the successful completion of this offering, Slide has placed $660 million of our reinsurance program” in the insurance-linked securities market, he added.
It was the fourth and largest cat bond offering sponsored by Slide and it comes at a time that the bonds are becoming increasingly popular with hedge funds and other investors.
John Seo, co-founder of Fermat Capital Management, told Bloomberg News that he expects the market for cat bonds to grow 20% this year.
Cat bonds emerged from last year’s hurricane season relatively unscathed, Bloomberg noted. But Meteorologists are predicting this year’s Atlantic hurricane season will be more active than usual, with the possibility of three to five major storms.
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