Hippo closes $100M catastrophe bond including wildfire coverage

Hippo Holdings Inc. (NYSE: HIPO) completed a $100 million catastrophe bond through Mountain Re Ltd. (Series 2026-1), sponsored by its subsidiary Spinnaker Insurance Company. The offering was oversubscribed at rates below the initial pricing range, according to a company statement.

The three-year bond provides collateralized reinsurance protection against five U.S. perils: named storm, earthquake, severe thunderstorm, winter storm, and fire. The inclusion of fire coverage, primarily California wildfire exposure, represents an expansion from previous offerings.

Mountain Re Ltd. (Series 2026-1) issued $100 million in Class A Notes with coverage extending through June 7, 2029. The bond operates on a per-occurrence, indemnity trigger basis.

"Our ability to return to the capital markets and execute at favorable terms is a direct reflection of the strength of our carrier platform," said Rick McCathron, President and CEO of Hippo Holdings. "Our capital structure is designed to grow intelligently — retaining more risk when market conditions reward it and accessing strategic long-term capacity when it creates value."

This marks Hippo's second catastrophe bond issuance, following a $110 million debut offering in 2023. Howden Capital Markets and Advisory served as advisor on the transaction.

The San Jose-based company operates as a technology-focused insurance group offering coverage across personal and commercial lines through its carrier platform.

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