Florida-based homeowners insurance specialist Olympus Insurance has entered the catastrophe bond market for the first time, completing a $120 million multi-year issuance through the newly established Abacab Re Ltd. that provides capital markets-backed reinsurance protection against Florida named storm risk.
Initially launched at $100 million in size, with a price guidance of 7.75% to 8.50%, Olympus’ inaugural catastrophe bond reportedly received strong investor demand, enabling the Series 2026-1 issuance to upsize by 20% to $120 million and price approximately 23% below the midpoint of initial pricing guidance at 6.25%.
Olympus noted that this transaction marks a landmark achievement for the firm, validating its long-standing strategy of maintaining a highly resilient balance sheet and robust reinsurance protection.
Lockton Re Capital Markets served as the sole structuring agent and joint bookrunner, and Gallagher Securities served as joint bookrunner for the transaction.
Further details on Abacab Re Ltd. (Series 2026-1) can be found in the Deal Directory of our sister publication, Artemis, which aims to serve as a one-stop resource for information on catastrophe bond and insurance-linked securities (ILS) transactions.
Tim Stroble, CEO of Olympus Insurance, commented, “As a Florida-focused insurer with meaningful hurricane exposure, robust and reliable reinsurance protection is fundamental to everything we do.
“This transaction provides us with fully collateralised, multi-year protection and further diversifies our sources of capital, while continuing to strengthen our ability to withstand extreme events.
“We were particularly encouraged by the depth of engagement from investors, who took the time to understand how Olympus differentiates itself from other Florida carriers — an appreciation that was instrumental in driving strong demand and a successful upsize.”
“Our reputation in the global reinsurance market is exceptionally strong. It’s driven by disciplined underwriting and consistent best-in-class claims handling, backed by the expertise of our Jacksonville operations team — all of which support our ability to access capital markets and enhance protection for Olympus policyholders.”
Zach Breslin, Head of Lockton Re Capital Markets, added, “It was our pleasure to guide Olympus through its inaugural cat bond issuance. The widespread investor demand and strong execution of this transaction are a testament to Olympus’ track record and reputation, and Lockton Re Capital Markets is proud to have supported them in accessing new sources of capital to drive their business forward.”
