People’s Trust Insurance Company, the Florida homeowners specialist insurer, has now successfully secured $100 million of named storm reinsurance from the capital markets through its debut GWS Re Limited (Series 2026-1) catastrophe bond issuance, pricing the notes at the mid-point of initial guidance, Artemis can report.
The Florida specialist insurer was initially targeting a $100 million source of fully-collateralized Florida named storm reinsurance protection from cat bond investors.
As we reported in our first update on this transaction, the target remained for GWS Re Limited to offer and sell a $100 million single Class A tranche of Series 2026-1 notes to cat bond investors, but the price guidance had been updated at the mid-point of the range of spreads that was initially being offered.
Now, sources have told us that People’s Trust has successfully priced the notes at the exact mid-point of the initial range, securing its targeted $100 million of capital markets backed Florida named storm reinsurance protection.
With these new cat bond notes now priced and the coverage secured once the deal settles, GWS Re Limited will issue a single $100 million tranche of Series 2026-1 Class A notes, that will be sold to cat bond investors, which will provide People’s Trust with a three-year source of fully-collateralized Florida named storm reinsurance protection, structured on an indemnity trigger and per-occurrence basis, running from June this year.
The $100 million of Series 2026-1 Class A cat bond notes that GWS Re Limited will issue come with an initial attachment probability of 2.52%, and an initial base expected loss of 1.88%, and were first offered to catastrophe bond investors with pricing guidance of 6% to 6.75%.
As we reported, that guidance was revised to a new range of 6.25% to 6.5%, and now we understand the notes have been priced at 6.375%, which is the exact mid-point of the revised range, and also falls at the mid-point of the initial guidance too.
This is a great result for People’s Trust Insurance Company, as the company has managed to obtain its first catastrophe bond at its initial target size, while utilising investor appetite within the market to secure it at attractive pricing.
As a reminder, you can read all about this GWS Re Limited (Series 2026-1) catastrophe bond and every deal issued since 1996 in the extensive Artemis Deal Directory.
