Favourable Mountain Re 2026-1 cat bond execution reflects carrier strength: Hippo’s McCathron

The successful closing of Spinnaker Insurance Company’s second catastrophe bond, the $100 million Mountain Re Ltd. (Series 2026-1) issuance, reflects parent company Hippo Holdings’ ability to return to the capital markets and execute at favourable terms, according to Rick McCathron, President and CEO of Hippo Holdings.

Earlier this month, Spinnaker Insurance Company, a wholly owned subsidiary of Hippo Holdings, secured $100 million of US multi-peril collateralized reinsurance from the capital markets through its new Mountain Re Ltd. (Series 2026-1) issuance.

As we reported at the time, Spinnaker Insurance managed to successfully price the cat bond notes at the lowest-end of its reduced guidance, which reflects strong capital markets demand and Spinnaker’s growing track record as a repeat cat bond sponsor.

This Mountain Re 2026-1 catastrophe bond is set to provide Spinnaker Insurance with reinsurance on a per-occurrence and indemnity trigger basis that runs across a three-year term, to June 7th, 2029.

“Coverage extends across five U.S. perils: named storm, earthquake, severe thunderstorm, winter storm, and fire. The addition of fire — primarily California wildfire exposure — is new to this issuance and reflects Hippo’s commitment to maintaining reinsurance protection that is responsive to the evolving risk landscape,” Hippo explained.

Rick McCathron, President and CEO of Hippo Holdings, commented: “Our ability to return to the capital markets and execute at favorable terms is a direct reflection of the strength of our carrier platform.

“Our capital structure is designed to grow intelligently — retaining more risk when market conditions reward it and accessing strategic long-term capacity when it creates value. This transaction does exactly that.”

Spinnaker was advised on the transaction by Howden Capital Markets and Advisory (HCMA), the capital markets and insurance-linked securities (ILS) specialist unit of broking group Howden.

Mitchell Rosenberg, Managing Director, Co-Head Global ILS at HCMA, said: “Hippo’s distinctive, industry-leading approach to underwriting, exposure management, and claims handling was rewarded by investors through both pricing and capacity support.

“It was a pleasure to advise Hippo on its second catastrophe bond and help expand its reinsurance protection to include wildfire — a critical coverage in today’s environment.”

Hippo said the second Mountain Re cat bond sponsorship, “reinforces the company’s strategy of diversifying its reinsurance capital sources through direct access to institutional investors.”

As a reminder, you can read all about this new Mountain Re Ltd. (Series 2026-1) catastrophe bond, and view details of more than 1,000 other cat bond issuances, in the extensive Artemis Deal Directory.