Porch Group, the US homeowner’s specialist insurer has now priced its debut catastrophe bond, securing the targeted $100 million in multi-peril collateralized catastrophe reinsurance through the Harbor Crest Re Ltd. (Series 2026-1) issuance, while the notes priced at the lowest-end of reduced guidance, Artemis has learned.
In our first update on this deal, we reported that the size target had not been changed from the initial $100 million, however, Porch was looking to capitalise on investor appetites for risk by lowering the pricing of the notes on this Harbor Crest Re 2026-1 issuance.
Now we’re told, the targeted $100 million size has been achieved, while the pricing of the notes has been finalised at the bottom of the reduced range.
Harbor Crest Re Ltd. will now issue a single $100 million tranche of Series 2026-1 Class A notes to investors, designed to provide Porch’s underwriting entities with a roughly four-year source of collateralized and multi-peril reinsurance protection.
As we’ve explained before, the notes will cover Porch against certain losses from named storms, winter storms, severe weather events, wildfire and fire-following earthquake events across the 50 states of the US and D.C. and have been structured on a per-occurrence and indemnity trigger basis.
The $100 million tranche of Series 2026-1 Class A notes that Harbor Crest Re will issue have an initial base expected loss of 1.97%.
The notes were initially offered to cat bond investors with price guidance for a spread in a range from 5% to 5.75%, which was then later reduced to a revised and lower range of between 4.5% and 5%.
We’re now told the $100 million of notes have been priced to pay investors a spread of 4.5%, so below the initial guidance and at the bottom of the reduced range.
As a result, Porch Group has managed to successfully secure its targeted multi-peril collateralized catastrophe reinsurance limit at lower than anticipated pricing through its debut cat bond.
It also continues the rapid momentum seen across the cat bond market this year, as a growing number of first-time sponsors have ventured into the capital markets for efficient and diversified reinsurance solutions.
As a reminder, you can read all about this Harbor Crest Re Ltd. (Series 2026-1) transaction and every other catastrophe bond deal in our extensive Artemis Deal Directory.
