Mountain Re Ltd. (Series 2026-1) Class A Notes
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Company and Transaction Overview
On May 15, 2026, Hippo Holdings’ programs carrier, Spinnaker Insurance Company (“Spinnaker”), sponsored its second 144A Cat Bond issuance through its Bermuda-domiciled SPV, Mountain Re Ltd.
Mountain Re Ltd. provides Spinnaker per-occurrence, indemnity-triggered event coverage through this transaction.
The transaction featured a wildfire contribution to expected loss of 70%, with the vast majority of the exposure centered in California.
Despite these factors, the Series 2026-1 Notes garnered significant support from investors, with oversubscription driving pricing to a 7.25% spread — 50 basis points below the low end of initial price guidance.
Spinnaker’s unique and proven underwriting strategy helped it achieve its targeted amount.
- Spinnaker had exposure to the recent LA wildfires and coastal exposure to Hurricane Ian, and yet suffered minimal losses on both accounts.
Series 2026-1 Class A Notes: Fire, US Named Storm, Earthquake, Severe Thunderstorm, and Winter Storm
- Expected Loss (WSST): 2.51%
- Size: $100mm
- Initial Price Guidance: 7.75% – 8.50% → Final Pricing: 7.25% (~11% decrease from midpoint of initial guidance)
Howden Capital Markets & Advisory Role
Howden Capital Markets & Advisory (“HCMA”) acted as Sole Structuring Agent and Sole Bookrunner.
- Organized pre-deal in-person investor meetings to further foster Hippo and Spinnaker’s relationships with Cat Bond investors.
- Identified a target list of institutional investors with appetite for similar transactions and interested in supporting Hippo and Spinnaker.
- Developed and led the structuring and placement of the Series 2026-1 Notes, including, but not limited to:
- Shaped the transaction structure and ensured the structure was properly detailed in the offering documents.
- Coordinated with legal counsel and a variety of other service providers.
- Produced the investor presentation and supported finalization of offering documents.
- Closely coordinated alignment of the Series 2026-1 Notes with the Sponsor’s traditional program.
