Hippo Secures $100 Million Catastrophe Bond Adding Wildfire Coverage
Hippo Holdings closed a $100 million Series 2026-1 catastrophe bond through Spinnaker Insurance, providing fully collateralized reinsurance over a three-year term through June 7, 2029. The oversubscribed issuance added California wildfire to named storm, earthquake, severe thunderstorm and winter storm coverage while deepening reinsurance capital sources.
1. Bond Closing Details
Hippo closed Mountain Re Ltd. Series 2026-1, issuing a $100 million tranche of Class A Notes with a three-year per-occurrence indemnity trigger structure, fully collateralized to June 7, 2029. Spinnaker Insurance Company sponsored the bond, marking Hippo’s second catastrophe bond issuance following the $110 million debut in 2023.
2. Expanded Multi-Peril Coverage
The transaction extends reinsurance protection across five U.S. perils—named storm, earthquake, severe thunderstorm, winter storm and, for the first time, fire focused on California wildfire exposure—addressing evolving loss scenarios and risk concentrations.
3. Strategic Capital Diversification
The offering was oversubscribed at rates below initial guidance, demonstrating strong investor demand and validating Hippo’s carrier platform strength. Direct market access to institutional capital enhances the company’s ability to balance retained risk with strategic capacity deployment.