People’s Trust Insurance Company, a Florida homeowners specialist insurer, has entered the catastrophe bond market to sponsor its first ever issuance, seeking $100 million of named storm reinsurance from the capital markets through a GWS Re Limited (Series 2026-1) deal, Artemis can report.
People’s Trust Insurance Company is the latest new sponsor to enter the catastrophe bond market in 2026, with already four first-time sponsors having completed and settled new cat bond issuances this year and another four now in the pipeline, including People’s Trust.
We’ve seen a number of new Florida specialist underwriters in the cat bond market as well over recent years, as carriers are expanding again in the state and buying more reinsurance. So turning to the capital markets to augment and diversify that protection, using catastrophe bonds among other insurance-linked securities instruments.
People’s Trust Insurance Company has established a new Bermuda based structure to issue catastrophe bonds on its behalf named GWS Re Limited, we understand.
GWS Re Limited is offering a single Series 2026-1 Class A tranche of notes to investors, initially sized at $100 million. These notes will be sold and the proceeds used to collateralize a reinsurance agreement between the issuer and People’s Trust.
The $100 million of notes will provide People’s Trust with a three-year source of fully-collateralized Florida named storm reinsurance protection, running from June this year.
The coverage from this GWS Re Series 2026-1 cat bond will be structured on an indemnity trigger and per-occurrence basis for the sponsor.
The currently $100 million of GWS Re Series 2026-1 Class A notes would attach their coverage at $195 million and exhaust it at $295 million, we are told.
The notes come with an initial attachment probability of 2.52%, an initial base expected loss of 1.88% and they are being offered to cat bond investors with price guidance for a risk interest spread in a range from 6% to 6.75%, we have been told.
It’s good to see another specialist Florida homeowners insurer turning to the catastrophe bond market for reinsurance for the first time. We expect there will be other first-time cat bond market entrants that emerge as the mid-year reinsurance renewal season nears.
You can read all about this GWS Re Limited (Series 2026-1) catastrophe bond and every deal issued since 1996 in the Artemis Deal Directory.
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