Ocean Harbor Insurance Group has successfully priced its debut catastrophe bond with the Oceanside Re Ltd. (Series 2025-1) issuance set to provide the targeted $75 million of collateralized multi-year catastrophe reinsurance for named storm and severe weather risks in the state of New York.
Ocean Harbor entered the catastrophe bond market as a first time sponsor in early April, aiming to secure $75 million or more in collateralized multi-year catastrophe reinsurance protection from this Oceanside Re 2025-1 deal.
Now, we’re told the targeted $75 million size has been achieved, while the pricing of the notes has been finalised at the bottom-end of the initial guidance.
As we previously reported, this debut catastrophe bond from Ocean Harbor, is designed to provide multi-year and fully-collateralized reinsurance to protect its Ocean Harbor Casualty Insurance Company entity, and in future any subsidiaries that are added to the coverage.
Now priced, the confirmed $75 million Oceanside Re 2025-1 cat bond will cover named storm and severe weather risks in the state of New York on an indemnity trigger and per-occurrence basis for Ocean Harbor Insurance, all across a three-year period running to the end of May 2028.
The $75 million of Oceanside Re 2025-1 cat bond notes come with an initial attachment probability of 4.9%, an initial expected loss of 3.102%, and were initially offered to cat bond investors with spread price guidance in a range from 6% to 6.5%.
We’re now told the $75 million of notes have been priced to pay investors a spread of 6%, so at the bottom-end of the initial guidance.
This is a great result for Ocean Harbor, with the company managing to successfully secure its debut cat bond at its targeted size.
It also continues the strong momentum seen across the market this year, as a growing number of first-time sponsors tap into the capital markets for efficient and diversified reinsurance solutions.
As a reminder, you can read all about this new Oceanside Re Ltd. (Series 2025-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.