Fidelis Insurance Bermuda Limited (FIBL) has successfully closed a new catastrophe bond, Herbie Re Ltd. (Series 2024-2), which provides the firm with $375 million of collateralized reinsurance protection against U.S., DC, Puerto Rico, and Virgin Islands named storm and earthquake risks.
This latest transaction marks the sixth series of notes issued by Herbie Re and the second deal of 2024 after the $150 million Herbie Re Ltd. (Series 2024-1) placed in February. It’s also the largest of the Herbie Re cat bonds from Fidelis so far.
The issuance is comprised of the Series 2024-2 Class A Principal-at-Risk Variable Rate Notes, the Series 2024-2 Class B Principal-at-Risk Variable Rate Notes, and the Series 2024-2 Class C Principal-at-Risk Variable Rate Notes.
The Class A and Class B Notes provide Fidelis with approximately four years of protection, scheduled to end on December 31st, 2028, while the the Class C Notes provide approximately two years of protection to December 31st, 2026.
All three tranches of notes will provide the company with a multi-year source of annual aggregate and territory weighted industry loss index triggered protection.
You can read more on this Herbie Re Ltd. (Series 2024-2) catastrophe bond, and all other cat bonds, in the Deal Directory of our insurance-linked securities (ILS) focused sister publication, Artemis.
The new catastrophe bond was priced on December 17th, 2024, and closed on December 27th, 2024.
Insurance and reinsurance broker Aon acted as sole structuring agent and sole bookrunner for the deal, while Willkie Farr & Gallagher (UK) LLP advised as counsel for Fidelis Insurance Group and Herbie Re.
Ian Houston, Chief Underwriting Officer, Fidelis Insurance Group, commented, “We are pleased to announce that Fidelis Insurance Group has completed the most recent issuance of the Herbie Re Catastrophe Bond program. These bonds continue to be a crucial part of our strategic capital management and risk mitigation plan
“Enhancing our overall reinsurance strategy, which includes quota share, excess of loss, and industry loss warranties (ILWs), the Herbie Re Catastrophe Bonds support our strategic underwriting partner The Fidelis Partnership.”
Richard Coulson, Deputy Group Chief Underwriting Officer, The Fidelis Partnership, added, “Building on the current Herbie Re Catastrophe Bond program, we are pleased to have executed the placement alongside Ian Houston and the Fidelis Insurance Group team to bring the latest series to market.
“This tranche of coverage represents the newest tool employed by Fidelis Insurance Group, supporting The Fidelis Partnership as we continue to capitalize on opportunities across catastrophe-exposed lines of business in 2025 and beyond.”
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