Cat Bond Pricing Falls 25% on Renewals

American Integrity Insurance and Safepoint Insurance have both completed new catastrophe bond placements totalling $510 million, with pricing reportedly down by approximately 25% year on year, according to Gallagher Securities.

The transactions—American Integrity’s Integrity Re III Ltd. Series 2026-1 and Safepoint’s Nature Coast Re 2026-1—reflect continued softening in the insurance-linked securities (ILS) market, as strong investor demand and ample capacity continue to drive spreads lower.

Gallagher Securities acted as sole structuring agent and bookrunner for both deals.

American Integrity: Expanded Protection and Broader Coverage

The $260 million Integrity Re III 2026-1 provides American Integrity Insurance Company with fully collateralised reinsurance protection against named storm events across Florida, Georgia, North Carolina and South Carolina. The insurer writes both personal and commercial residential business within these exposed coastal regions.

Following this issuance, American Integrity will have approximately $825 million of catastrophe bond protection in force from June 1, 2026.

Gallagher Securities chairman Bill Dubinsky noted that this was the insurer’s ninth catastrophe bond transaction, designed to align investor risk preferences with the company’s broader reinsurance programme. He highlighted that pricing spreads were around 25% lower compared with the previous year.

Safepoint: Upsized Transaction and Multi-State Cover

Safepoint Insurance Company’s Nature Coast Re 2026-1 secured $250 million of occurrence-based protection against named storms across Florida, Louisiana, Alabama, Mississippi and Texas.

Originally marketed at $150 million, the deal was upsized significantly due to strong investor demand. It marks the fifth issuance in the Nature Coast Re series and Safepoint’s tenth catastrophe bond overall.

According to Andras Bohm, managing director and global head of structuring at Gallagher Securities, the transaction achieved pricing roughly 25% lower than the prior year and included what he described as a “rare four-term structure” within the Florida-focused reinsurance market.

Market Context: Continued Softening in Cat Bond Spreads

Industry reports from Gallagher Re indicate that the catastrophe bond market remains highly active in early 2026, following a record-setting 2025 issuance year. Lower spreads and strong liquidity have encouraged both repeat and first-time sponsors to access the market.

New entrants this year include Olympus Insurance Company and Plymouth Rock Assurance, highlighting the widening appeal of catastrophe bonds as a core reinsurance tool.

As of late March 2026, total catastrophe bond issuance stood at approximately $5.88 billion, with a further $1.5 billion announced but yet to settle. This compares with $6.43 billion issued in the first quarter of 2025, indicating sustained momentum despite softer pricing.

Summary of Key Transactions

Overall, the latest placements underline a highly competitive catastrophe bond environment, where abundant capital continues to compress pricing while enabling sponsors to expand or optimise their reinsurance protection across increasingly broad geographic footprints.