Fidelis Insurance Closes New Catastrophe Bond
Fidelis Insurance Bermuda Limited [FIBL] has successfully closed a new catastrophe bond through the issuance of the Series 2024-2 Class A Principal-at-Risk Variable Rate Notes.
A spokesperson said, “Fidelis Insurance Holdings Limited [FIHL], a global specialty insurer, announced today that Fidelis Insurance Bermuda Limited [FIBL] has successfully closed a new catastrophe bond through the issuance 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 by its Herbie Re Ltd. program [Herbie Re].
“This is the sixth series of notes issued by Herbie Re and will provide the Fidelis Insurance Group with $375 million of collateralized reinsurance protection. The Series 2024-2 Notes issued will be exposed to insured industry losses resulting from Named Storm and Earthquake Covered Events occurring in the fifty states of the United States and the District of Columbia, Puerto Rico and the U.S. Virgin Islands, as reported by PCS, on an annual aggregate basis. The Class A Notes and the Class B Notes are expected to provide the Fidelis Insurance Group with approximately four years of protection, with the Risk Period scheduled to end on December 31, 2028. The Class C Notes are expected to provide the Fidelis Insurance Group with approximately two years of protection, with the Risk Period scheduled to end on December 31, 2026.”
Ian Houston, Fidelis Insurance Group Chief Underwriting Officer, said “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.” Ian Houston commented further “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 at The Fidelis Partnership, commented “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.”
The spokesperson said, “The catastrophe bond was priced on December 17, 2024, and closed on December 27, 2024. Aon acted as Sole Structuring Agent and Sole Bookrunner for the deal. Willkie Farr & Gallagher [UK] LLP advised as counsel for Fidelis Insurance Group and Herbie Re.”
