Mangrove Property Insurance enters catastrophe bond market with $111M deal

By AI, Created 6:06 PM UTC, June 01, 2026, /AGP/ – Mangrove Property Insurance completed its first catastrophe bond transaction, Buttonwood Re Ltd. 2026-1, securing $111 million in fully collateralized reinsurance protection for Florida named storm risk. The three-year deal gives the young Florida homeowners insurer multi-year coverage as it scales its balance sheet and risk capital base.

Why it matters: - Mangrove Property Insurance now has capital markets-backed reinsurance for Florida named storm losses, giving the insurer a multi-year layer of protection outside traditional reinsurance. - The $111 million transaction supports Mangrove’s expansion while backing a homeowners book exposed to hurricanes and other severe weather. - The deal adds fully collateralized coverage, which can help reduce counterparty risk and improve balance-sheet resilience.

What happened: - Mangrove sponsored its inaugural catastrophe bond transaction, Buttonwood Re Ltd. 2026-1, on June 1, 2026. - The transaction marked Mangrove’s debut in the insurance-linked securities market. - The deal secured $111 million of fully collateralized reinsurance protection for Florida named storm risk. - Gallagher Securities served as sole structuring agent and sole bookrunner. - Willkie Farr & Gallagher LLP served as legal counsel to Mangrove. - The Buttonwood Re 2026-1 Notes are listed on the Bermuda Stock Exchange.

The details: - Buttonwood Re provides three years of protection. - The structure includes four tranches of notes backing indemnity-triggered coverage. - Three tranches are occurrence-triggered. - One tranche is annual aggregate-triggered. - The protection applies on both a per-occurrence basis and an annual aggregate basis. - Appleby Bermuda served as Bermuda counsel. - Moody’s Risk Management Solutions served as modeling agent. - Artex Capital Solutions served as insurance manager.

Between the lines: - Mangrove launched operations in early 2025, making the cat bond a fast move into the capital markets for a relatively new insurer. - The company has grown through new business origination and through assumption of policies from Citizens Property Insurance Corporation. - Mangrove is seeking diversified sources of risk capital as it builds what it describes as a resilient balance sheet. - More than 20 investors participated, and most were new capital partners for Mangrove. - CEO and Founder Stephen Weinstein said the company expects to remain a consistent participant in the catastrophe bond market.

What’s next: - Mangrove said it plans to keep using catastrophe bonds as part of its long-term risk transfer strategy. - The insurer aims to use the structure to support policyholder protection and future growth in the Florida homeowners market. - Mangrove also signaled continued participation from both traditional and non-traditional capital providers.

The bottom line: - Mangrove’s first cat bond gives the Florida insurer a new, multi-year source of reinsurance capacity just as it continues to scale.