The Series 2026-1 Class A notes of Acorn Re Ltd., the seventh parametric catastrophe bond in Hannover Re's Acorn Re programme, now seek $350m of protection. The target was $200m at launch, earlier this month; Artemis reported on 21 October that it has been raised by 75%.
Hannover Re sponsors the bond, and the ceding insurer is Oak Tree Assurance Ltd., a Vermont-based workers' compensation captive of the Kaiser Permanente group. The notes cover earthquake risk on the US West Coast, mainly in California, with the trigger area also reaching into neighbouring states. They run for three years, from 1 November 2026 to the end of October 2029.
The trigger is parametric: payouts follow a sliding scale based on the magnitude and location of an earthquake, starting at a minimum of 25% of the principal. The notes have an expected loss of 0.78%. Price guidance has narrowed from an initial risk spread of 2% to 2.25% to a range of 2% to 2.15%, about 2.4% lower at the midpoint, according to Artemis. The closing date was not stated.
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Artemis ↗News publisher · 21 Oct 2026
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