Some $450mn of cat bond limit was placed in the market last week from returning sponsors, taking total cat bond volume issued in 2024 as of 30 December to $17.25bn, according to data tracked by this publication.
Floridian carrier Safepoint secured $200mn of named storm coverage in Florida, Louisiana, Alabama, Mississippi and Texas to cover itself and newer associated entities Cajun and Manatee. The deal doubled in size during marketing.
Unlike previous Nature Coast Re issuances, the latest deal will provide coverage on an industry loss, annual aggregate basis as calculated by Property Claims Services (PCS).
The three prior Nature Coast Re deals provided coverage on an indemnity, per-occurrence basis, and had higher spreads than this one.
Meanwhile, QBE returned after a long absence from the ILS market to secure $250mn of named storm and quake coverage in US and Canadian territories with a PCS index trigger.
QBE was able to secure the capital at a spread of 400 basis points (bps), 14% lower than the midpoint of the initially guided range of 425-500bps.
Cat bond issuance for 2024 had already set a new annual record by the middle of December, but the latest deals have taken volumes just beyond $17bn.
Incorporating these deals, Q4 cat bonds have priced at an average 686 basis points on a weighted average basis, falling 10% from the mid-point of pricing guidance.