Tremont Re Ltd. (Series 2026-1)

This is the debut catastrophe bond for US northeast regional insurer Plymouth Rock Home Assurance Corporation, a company that underwrites more than $2 billion in premium across the region.

For its debut catastrophe bond, Plymouth Rock is targeting named storm reinsurance protection, with an initial target to secure $100 million in limit, we are told.

Tremont Re Ltd. has been established in Bermuda as an issuer for cat bonds to benefit Plymouth Rock.

For its first issuance, Tremont Re Ltd. will offer investors a single $100 million tranche of Series 2026-1 Class A notes, which are designed to provide reinsurance to Plymouth Rock and certain subsidiaries.

Global reinsurer Hannover Re is acting as a front to the capital markets, with the protection set to be channelled from the issuer Tremont Re, via the reinsurer to Plymouth Rock.

The beneficiaries of the cat bond’s coverage will be Plymouth Rock Home Assurance Corporation, as well as certain subsidiaries of the insurer named Bunker Hill.

The Tremont Re 2026-1 Class A cat bond notes will provide Plymouth Rock and subsidiaries with a source of fully-collateralized reinsurance against losses from named storms affecting the US states of Massachusetts and Connecticut, sources have told us.

The reinsurance is structured on an indemnity trigger and per-occurrence basis, while it will run over a three year term from issuance.

The coverage provided by the Class A notes would attach at $100 million of losses and exhaust at $300 million, giving the issuance room to upsize should the sponsor elect to, we understand.

The $100 million of Tremont Re Series 2026-1 Class A notes will come with an initial attachment point of 3.33%, an initial base expected loss of 2.22% and are being offered to cat bond investors with price guidance in a range from 4.5% to 5%.