Plymouth Rock, the northeast US regional insurer, continues to seek $100 million in named storm reinsurance protection through its debut catastrophe bond, the Tremont Re Ltd. (Series 2026-1) issuance, but the company now aims to capitalise on investor appetite and has lowered the price guidance for the notes on offer, Artemis understands.
Plymouth Rock underwrites auto and home insurance products throughout northeastern US states, with the firm having underwritten over $2 billion in premiums across the region.
The regionally focused insurer made its debut in the catastrophe bond market in mid-February, targeting $100 million of named storm reinsurance protection from the capital markets.
We are told that target remains the same, but like most catastrophe bond sponsors, Plymouth Rock is aiming to be able to lower the pricing of the risk interest spread it will pay for the coverage.
Tremont Re Ltd. is currently offering cat bond 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.
As we’ve explained before, the beneficiaries of the Tremont Re 2026-1 cat bond’s coverage are Plymouth Rock Home Assurance Corporation, as well as certain subsidiaries of the insurer named Bunker Hill.
The cat bond notes 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.
The reinsurance is structured on an indemnity trigger and per-occurrence basis, which 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 Plymouth Rock elect to.
The still $100 million of Class A notes that Tremont Re is offering come with an initial attachment point of 3.33%, and an initial base expected loss of 2.22%.
These notes were first offered to cat bond investors with spread price guidance in a range from 4.5% to 5%. That guidance has now been lowered to a revised range of 4% to 4.5%.
As it appears, Plymouth Rock looks set to prioritise price over size with its debut catastrophe bond, unless the company opts to upsize it after it has an indication of the final pricing, which can sometimes occur during the marketing phase of cat bonds.
As a reminder, you can read all about this new Tremont Re Ltd. (Series 2026-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
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