People’s Trust targets mid-guidance pricing for debut $100m GWS Re cat bond

People’s Trust Insurance Company, the Florida homeowners specialist insurer, is now targeting mid-guidance pricing for the $100 million of named storm reinsurance it aims to secure from the capital markets through its debut GWS Re Limited (Series 2026-1) catastrophe bond issuance, Artemis can report.

Last month, People’s Trust Insurance Company became the latest new sponsor to make its debut in the catastrophe bond market.

So far this year, we’ve already seen seven new first-time sponsors enter the market as the cat bond space continues to expand and grow rapidly.

We’ve also seen a number of new Florida specialist underwriters in the cat bond market as well throughout recent years, as carriers are expanding again in the state and buying more reinsurance.

As we’ve explained before, People’s Trust Insurance Company has established a new Bermuda based structure to issue catastrophe bonds on its behalf named GWS Re Limited.

The initial target for this GWS Re Series 2026-1 cat bond, was for People’s Trust to secure at least $100 million in fully-collateralized Florida named storm reinsurance protection from cat bond investors.

We understand that, as of this time, the size target has not been changed from the initial $100 million, but that the price guidance has been updated at the mid-point of the range of spreads that was initially being offered.

GWS Re Limited is still offering $100 million of Series 2026-1 Class A tranche of notes that 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 is offering 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%.

We’re now told that price guidance has been revised to a new range of 6.25% to 6.5%, so around the middle of the initial range.

As a result, it appears that People’s Trust Insurance Company is looking to capitalise on cat bond investor demand, and favourable market conditions, to secure its first catastrophe bond coverage 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.