Florida-based homeowners insurance specialist Olympus Insurance has entered the catastrophe bond market for the first time, completing a $120 million multi-year offering through newly formed Abacab Re Ltd., which provides capital markets-backed reinsurance protection for Florida storm risk.
According to reports, Olympus’s first issuance of catastrophe bonds was originally worth US$100 million with a guidance price of 7.75% to 8.50%. It received strong demand from investors, which expanded the issuance size of the 2026-1 series bonds by 20% to US$120 million, and the price was approximately 23% lower than the midpoint of the initial guidance price of 6.25%.
Olympus noted that the transaction marks a milestone achievement for the company and validates its long-term strategy of maintaining a highly resilient balance sheet and strong reinsurance protection.
Lockton Re Capital Markets acted as the exclusive structuring agent and joint bookrunner for the transaction, with Gallagher Securities acting as joint bookrunner.
For more details about Abacab Re Ltd. (Series 2026-1), please see the trade directory from our sister publication Artemis, which aims to be a one-stop source for cat bond and insurance-linked securities (ILS) trading information.
Tim Stroble, CEO of Olympus Insurance Company, commented: “As a Florida-focused insurance company exposed to major hurricanes, strong and reliable reinsurance protection is the foundation of everything we do.
“This transaction provides us with fully collateralized multi-year protection and further diversifies our funding sources while continuing to strengthen our ability to withstand extreme events.
“We are particularly encouraged by the deep engagement from investors who have taken the time to understand how Olympus differentiates itself from other operators in Florida – an appreciation that helps drive strong demand and successful scale-up.”
“Our reputation in the global reinsurance market is extremely strong. This is driven by rigorous underwriting and consistently best-in-class claims handling, and supported by the expertise of our Jacksonville operations team – all of which supports our ability to access capital markets and enhance protection for Olympus policyholders.”
Zach Breslin, principal at Lockton Re Capital Markets, added: “We are pleased to guide Olympus through its first-ever catastrophe bond issuance. The broad demand from investors and the strong execution of this transaction are a testament to Olympus’ track record and reputation, and Lockton Re Capital Markets is proud to support them in accessing new sources of capital to advance their business.”
