Plymouth Rock, the northeast US regional insurer, has successfully secured its targeted $100 million in named storm reinsurance protection through its debut catastrophe bond, as the Tremont Re Ltd. (Series 2026-1) notes have now been priced approximately 16% below the mid-point of initial guidance, Artemis has learned.
The regionally focused insurer entered the catastrophe bond market for its debut sponsorship back in February, with a target to secure $100 million of collateralized and multi-year named storm reinsurance protection from this Tremont Re Series 2026-1 issuance.
As we later reported in a first update on this deal, Plymouth Rock’s target size for the cat bond remained at $100 million, but the price guidance being offered was reduced and updated below the initial range.
Now, we’re told that the Tremont Re Series 2026-1 Class A notes have been successfully priced, securing Plymouth Rock the targeted $100 million of reinsurance protection, while the pricing was finalised roughly 16% below the mid-point of the initial guidance range, indicating a strong result for the sponsor’s first cat bond venture.
As a result, Plymouth Rock and subsidiaries will now benefit from a $100 million source of fully-collateralized reinsurance against losses from named storms affecting the US states of Massachusetts and Connecticut, with that protection structured on an indemnity trigger and per-occurrence basis to run over a three year term from issuance.
The $100 million of Class A notes that Tremont Re will now issue come with an initial base expected loss of 2.22%.
The notes were first offered to cat bond investors with spread price guidance in a range from 4.5% to 5%, which was lowered at the first update to a revised range of 4% to 4.5%.
We’ve now learned that the Tremont Re Series 2026-1 Class A cat bond notes have been priced to pay investors an initial risk interest spread of 4%, which is roughly 16% below the mid-point of the initial price guidance range.
Plymouth Rock has prioritised price over size with its debut catastrophe bond it seems, as the notes had room to upsize given they will provide reinsurance across a share of a $200 million layer of its reinsurance tower, attaching at $100 million of losses and exhausting at $300 million.
As a reminder, you can read all about this new Tremont Re Ltd. (Series 2026-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
