Hippo Announces Completion of $110M Debut Catastrophe Bond
01 Junho 2023 - 10:05AM
Business Wire
Mountain Re provides economically efficient
source of reinsurance against cat events and access to capital
markets
Spinnaker Insurance Company, a wholly owned subsidiary of Hippo
Holdings Inc. (NYSE: HIPO), today announced the successful
sponsorship of Mountain Re Ltd. Series 2023-1 catastrophe bond. The
$110 million cat bond is a 10% upsize from the initial $100 million
transaction target.
As part of the transaction, Spinnaker is entering into a
reinsurance contract with Mountain Re that offers protection
against a variety of perils, including named storms, fire following
an earthquake, severe thunderstorms, and winter storms, and
provides Spinnaker with diversification of risk transfer capacity
and access to capital markets.
“The successful sponsorship of our debut catastrophe bond
demonstrates our maturation as a company. It is the direct result
of our geographic diversification efforts and will serve as an
integral part of our reinsurance program,” said Hippo President and
CEO Rick McCathron. “Mountain Re is a multi-year,
capital-markets-backed source of reinsurance that provides
reinsurance coverage against catastrophic events for Hippo
Insurance Service’s homeowners products underwritten by
Spinnaker.”
The Class A Notes issued by Mountain Re Ltd. came at a spread of
6.75%, with an initial base expected loss of 0.86% and an indemnity
trigger over a three-year term with the Class A Notes scheduled to
mature on June 5th, 2026.
The cat bond was successfully closed on May 31, 2023. GC
Securities, a division of MMC Securities LLC, was the sole
structuring agent and bookrunner.
“Current market conditions require creative risk transfer
structures like the one provided by Mountain Re,” said Shiv Kumar,
President of GC Securities. “We’re very pleased to support
Spinnaker as it delivers innovative insurance solutions and access
to the reinsurance market to MGA, program administration and
insurtech companies.”
Mountain Re is not a subsidiary or affiliate of Hippo.
About Hippo
Hippo is protecting the joy of homeownership, helping to
safeguard customers’ most important financial asset by harnessing
the power of real-time data, smart home technology, and a growing
suite of home services to deliver proactive home protection.
Hippo Holdings Inc. operating subsidiaries include Hippo
Insurance Services, Hippo Home Care, First Connect Insurance
Services, Spinnaker Insurance Company, Spinnaker Specialty
Insurance Company, and Mainsail Insurance Company. Hippo Insurance
Services is a licensed property casualty insurance agent with
products underwritten by various affiliated and unaffiliated
insurance companies. For more information, including licensing
details, visit http://www.hippo.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230601005307/en/
Investors: Cliff Gallant Investors@hippo.com
Press: Mark Olson press@hippo.com
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