Fidelis closes new cat bond

Fidelis Insurance Holdings has announced that Fidelis Insurance Bermuda has successfully closed a new catastrophe bond through the issuance of the Series 2024-1 Class A Principal at Risk Variable Rate Notes and the Series 2024-1 Class B Principal at Risk Variable Rate Notes by its Herbie Re program.

This is the fifth series of notes issued by Herbie Re and will provide the Fidelis Insurance Group with $150 million of collateralised reinsurance protection. The Series 2024-1 Notes issued will be exposed to insured industry losses resulting from named storm and earthquake covered events occurring in the US and the District of Columbia, Puerto Rico and the US Virgin Islands, on an annual aggregate basis. Fidelis has the option to renew the Series 2024-1 Notes on an annual basis, up to a maximum of four complete annual risk periods.

“Fidelis Insurance Group is excited to have in place the latest issuance under the Herbie Re Catastrophe Bond program,” said Ian Houston (pictured), Fidelis Insurance group chief underwriting officer. “These bonds remain a critical component of our comprehensive capital management and outwards protection strategy, providing important capital relief and downside protection. They complement our other purchases such as quota share, excess of loss and ILWs to support the work of Fidelis MGU.” 

Richard Coulson, deputy group chief underwriting officer at Fidelis MGU, added: “We have worked in close alignment with the Fidelis Insurance Group to bring this series to market which builds on their current Herbie Re Catastrophe Bond program. This tranche of cover is the latest tool employed by Fidelis Insurance Group to enable us to capitalise on opportunities across catastrophe exposed lines of business in 2024 and beyond.

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