Plymouth Rock Sponsoring Debut Catastrophe Bond, $100m Tremont Re 2026-1
•February 10, 2026
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Why It Matters
The deal shows regional insurers increasingly turning to capital‑market solutions for catastrophe risk, diversifying traditional reinsurance sources. It also expands investor exposure to U.S. storm risk through a fully‑collateralized structure.
Key Takeaways
- •Plymouth Rock issues $100M debut catastrophe bond
- •Coverage targets named storms in Massachusetts, Connecticut
- •Hannover Re fronts capital market transaction
- •Bond offers 4.5‑5% price guidance
- •Three‑year term with $100M attachment point
Pulse Analysis
Catastrophe bonds have become a cornerstone of modern risk transfer, allowing insurers to tap global capital for protection against low‑frequency, high‑severity events. Over the past decade, the market has broadened beyond legacy carriers, attracting regional players that seek bespoke coverage without over‑relying on traditional reinsurers. By securitizing risk, insurers can lock in pricing, achieve full collateralization, and diversify their capital base, while investors gain access to returns uncorrelated with conventional markets.
Plymouth Rock’s $100 million Series 2026‑1 issuance exemplifies this trend. Structured through Bermuda‑based Tremont Re Ltd., the bond provides indemnity‑triggered protection on a per‑occurrence basis for named storms in Massachusetts and Connecticut. With an initial attachment point of 3.33% and a base expected loss of 2.22%, the offering is priced between 4.5% and 5%, reflecting current market appetite for U.S. storm risk. Hannover Re acts as the fronting reinsurer, channeling fully‑collateralized capital to Plymouth Rock and its subsidiaries, thereby ensuring swift claim settlement while preserving the insurer’s balance sheet.
The broader implication is a validation of the cat‑bond model for mid‑size, geographically focused insurers. As climate change intensifies storm activity, carriers like Plymouth Rock are likely to pursue additional issuances, potentially scaling limits or expanding trigger types. For investors, the deal adds a diversified, high‑yield asset class with transparent risk parameters. Market observers expect continued growth in regional sponsor participation, which could deepen liquidity, drive pricing efficiency, and further integrate catastrophe risk into mainstream capital markets.
Plymouth Rock sponsoring debut catastrophe bond, $100m Tremont Re 2026-1
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Plymouth Rock, a northeast US regional insurer, is the latest first time catastrophe bond sponsor to enter the market, with the firm seeking $100 million in named storm reinsurance from investors through a Tremont Re Ltd. (Series 2026-1) issuance, Artemis can report.
Plymouth Rock is also the latest regionally focused insurer to look to the catastrophe bond market for reinsurance protection, with the number of these geographically narrow underwriters that turn to cat bonds having expanded meaningfully in recent years.
Plymouth Rock underwrites auto and home insurance products across northeastern US states, with more than $2 billion in premium underwritten across the region.
For its debut catastrophe bond, Plymouth Rock is targeting named storm reinsurance protection, with an initial target to secure $100 million in limit, we are told.
Tremont Re Ltd. has been established in Bermuda as an issuer for cat bonds to benefit Plymouth Rock.
For its first issuance, Tremont Re Ltd. will offer 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.
We understand that global reinsurer Hannover Re is acting as a front to the capital markets, with the protection set to be channelled from the issuer Tremont Re, via the reinsurer to Plymouth Rock.
The beneficiaries of the cat bond’s coverage are said to be Plymouth Rock Home Assurance Corporation, as well as certain subsidiaries of the insurer named Bunker Hill.
The Tremont Re 2026-1 Class A cat bond notes will 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, sources have told us.
The reinsurance is structured on an indemnity trigger and per-occurrence basis, while it 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 the sponsor elect to, we understand.
The $100 million of Tremont Re Series 2026-1 Class A notes will come with an initial attachment point of 3.33%, an initial base expected loss of 2.22% and are being offered to cat bond investors with price guidance in a range from 4.5% to 5%.
It’s encouraging to see another debut cat bond sponsor and a new regional insurer entering the market, as it’s more clear evidence of the value insurers see in sourcing reinsurance from the capital markets in the catastrophe bond format.
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.
Plymouth Rock sponsoring debut catastrophe bond, $100m Tremont Re 2026-1 was published by: www.Artemis.bm
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