Mangrove's record Florida reinsurance program adds $111m cat bond and a sidecar

Mangrove Property Insurance Company has secured what it describes as a record-setting catastrophe reinsurance program for the 2026 Atlantic hurricane season, combining traditional reinsurance, a debut catastrophe bond and aggregate cover built for years when Florida takes multiple hits. The company says the program reaches a 1-in-175-year storm and includes aggregate protection for a season's third and fourth events. Mangrove placed $111m of Buttonwood Re Ltd. Series 2026-1 notes, its first cat bond, covering Florida named-storm losses on per-occurrence and annual aggregate bases. The tower draws on more than 30 reinsurers, with collateralized and ILS capacity from Hamilton's Ada Re, Elementum Advisors, Eskatos Capital Management, Nephila Capital and Quantedge.

Earlier this week, Mangrove announced its first sidecar, Grove Re Ltd., a Bermuda-domiciled Class 3A insurer designed to write business on an aligned basis and expand the company's access to third-party capital. CEO Stephen Weinstein tied the firm's market acceptance to its underwriting culture and clean balance sheet. Mangrove says the program exceeds state regulatory and rating-agency requirements.

The structure reveals Mangrove's underwriting view. Severity protection runs to a 1-in-175 storm; the aggregate cover for third and fourth events and an annual-aggregation cat bond are aimed at seasons of repeated strikes. That suggests Florida volatility has shifted from a single-event tail risk toward frequency in Mangrove's pricing model, and the company has carried the same view across traditional, collateralized and capital-markets layers in one program.