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Porch seeks lower pricing for debut $100 million cat bond
The revised price guidance narrows the Series 2026-1 Class A spread to 4.5% to 5.0% from 5.0% to 5.75%, aiming to cut the cost of reinsurance collateral.
Porch Group, a US homeowners insurer, is targeting lower pricing for its debut catastrophe bond sponsorship, after entering the market in June to raise capital markets reinsurance. The company still aims to secure $100 million of multi-peril collateralized catastrophe reinsurance through Harbor Crest Re Ltd., Series 2026-1, but is seeking a reduced spread.
According to Artemis, Harbor Crest Re continues to offer investors a single $100 million tranche of Series 2026-1 Class A notes designed to provide Porch’s underwriting entities, Porch Insurance Reciprocal Exchange and Homeowners of America Insurance Company, with about four years of collateralized multi-peril reinsurance protection.
The Series 2026-1 Class A notes carry an initial base expected loss of 1.97%. The notes were initially offered with price guidance for a spread of 5.0% to 5.75%, but Porch has since revised that range down to 4.5% to 5.0% to improve price execution.
Artemis also notes that 2026 has already seen 12 first-time catastrophe bond sponsors enter the market in the first half, and Porch is set to become the 13th once its debut cat bond settles. It is also approaching the 2025 record, when 15 first-time sponsors entered the cat bond market.