Tower Hill targets further reduction in pricing for $375m Winston Re 2026-1 catastrophe bond

Tower Hill Insurance Exchange is now targeting a second reduction in pricing for its new catastrophe bond sponsorship, maintaining the top-end $375 million target for reinsurance protection from the Winston Re Ltd. (Series 2026-1) issuance, while lowering price guidance again for all three tranches of notes on offer, Artemis can report.

Tower Hill ventured back into the catastrophe bond market at the end of March, initially seeking $225 million of fully-collateralized reinsurance protection against named storm losses in Florida.

It marks the third consecutive year that Tower Hill has sponsored cat bonds, but in 2026 this is the first to introduce a third event focused tranche of notes as the insurer looks to expand the utility of its capital markets backed reinsurance.

As we reported in our first update on this Winston Re Series 2026-1 cat bond issuance, the target size was raised to between $325 million and as much as $375 million, while the price guidance was lowered for the first time.

Now, we’re told Tower Hill is continuing to target the upper-end in size terms, to secure $375 million of reinsurance, while the price guidance for the notes has been lowered further and the targeted issuance date has been moved back slightly to allow time for investors to respond to the offering.

To read about all of Tower Hill Insurance Exchange’s catastrophe bonds filter our extensive Deal Directory by sponsor.

The Winston Re Series 2026-1 cat bond notes will provide Tower Hill with Florida named storm reinsurance on an indemnity trigger and per-occurrence basis across a three hurricane season term, beginning June 2026 and with maturity due in 2029.

The first two tranches are typical indemnity per-occurrence notes, that run their protection across every event that might attach their coverage, while the third tranche is the first for Tower Hill to be structured on a third event coverage basis.

What was initially a $100 million tranche of Series 2026-1 Class A notes are now targeted at $150 million in size. The Class A notes will come with an initial base expected loss of 1.29%. They were originally being offered to investors with spread guidance in a range from 5.5% to 6%, which first fell to a range of between 5% to 5.5% and we’re now told have had their pricing reduced again to between 4.5% and 5%.

What was also a $100 million Series 2026-1 Class B tranche of notes are also targeted at $150 million in size now. The Class B notes come with an initial base expected loss of 1.59%. They were first offered to investors with spread guidance in a range from 6.25% to 6.75%, which fell to 5.75% to 6.25% and has now been reduced again to between 5.25% and 5.75%, we understand.

Lastly, the originally $25 million Class C tranche of notes are targeted at $75 million in size. The Class C notes will come with an initial base expected loss of 0.49%. They started being offered to investors with spread guidance in a range from 7% to 7.75%, which first fell to 6.5% to 7% and we’re now told are offered with price guidance of between 6% and 6.5%.

Tower Hill Insurance Exchange looks set to secure strong execution for its third catastrophe bond, with the likely result being more reinsurance than initially targeted at pricing levels below the initial guidance.

As a reminder, you can read all about this Winston Re Ltd. (Series 2026-1) in the extensive Artemis Deal Directory that includes details on almost every cat bond ever issued.