Technology-based insurance group Hippo announced the closing of Mountain Re Ltd. (Series 2026-1), a $100 million catastrophe bond that provided multi-year collateralized reinsurance protection against a variety of risks in the United States.
The offering was sponsored by Spinnaker Insurance Company, a wholly-owned subsidiary of Hippo, and consisted of $100 million in Class A notes.
The notes are fully collateralized reinsurance subject to each occurrence of an indemnity trigger over a three-year term due June 7, 2029.
The company said the offer was oversubscribed at a rate below the initial guidance range, reflecting strong capital market demand and Spinnaker’s growing track record as a recurring catastrophe bond sponsor.
Coverage covers the five dangers in the United States: windstorms, earthquakes, severe thunderstorms, winter storms and fires.
The fire increase, which focuses on California wildfire risk, is a new feature of the offering and underscores Hippo’s commitment to maintaining reinsurance protection to adapt to the evolving risk landscape.
Hippo was advised by Howden Capital Markets and Advisory (HCMA).
Mitchell Rosenberg, managing director, co-head of global ILS at HCMA, said: “Hippo’s unique industry-leading approach to underwriting, risk management and claims processing is rewarded for investors through pricing and capacity support.
“It is a pleasure to advise Hippo on its second catastrophe bond and to help expand its reinsurance protection to include wildfires – a vital protection in today’s environment.”
The transaction is Hippo’s second issuance following its first US$110 million catastrophe bond issuance in 2023.
To learn more details about Mountain Re Ltd. (Series 2026-1) or other cat bonds and related ILS transactions, please visit our sister publication Artemis’ Deal Directory.
