Global specialty insurer Fidelis Insurance Holdings Limited has announced that Fidelis Insurance Bermuda Limited has closed a new catastrophe bond through the issuance by its Herbie Re Ltd. program.
Serving as the sixth series of notes it has issued, the issuance by Herbie Re included 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. It will provide Fidelis with collateralized reinsurance protection worth $375 million.
“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,” said Fidelis Insurance group chief underwriting officer Ian Houston.
According to a report by PCS, the Series 2024-2 Notes that were issued will be exposed to the insured industry losses from the storm and earthquake covered events that occurr in the 50 states of the US as well as the district of Columbia, Puerto Rico, and the US Virgin Islands on an annual aggregate basis.
“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,” said Houston.
“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,” said The Fidelis Partnership deputy group chief underwriting officer Richard Coulson said.
“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,” he added.
The Class A and Class B Notes are expected to give Fidelis around four years of protection, with the risk period set to end on December 31, 2028. Meanwhile, the Class C Notes will give Fidelis around two years of protection, with the risk period only until December 31, 2026.
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