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Beazley cyber cat bond (Cairney II)

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Beazley cyber cat bond (Cairney II) – At a glance:

  • Issuer: Artex SAC Limited
  • Cedent / sponsor: Beazley
  • Placement / structuring agent/s: ?
  • Risk modelling / calculation agents etc: CyberCube model
  • Risks / perils covered: Cyber risks
  • Size: $20m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: May 2023

Beazley cyber cat bond (Cairney II) – Full details:

Beazley, the London headquartered insurance and reinsurance company, has sponsored a second $20 million Section 4(2) private cyber catastrophe bond, dubbed “Cairney II” after the segregated account used.

It follows the firms $45m cyber cat bond earlier this year and will provide Beazley with an extension to its capital market investor-backed cyber reinsurance protection.

We understand this is a privately placed Section 4(2) cat bond issuance, and the special purpose insurer (SPI) used was the Artex Risk Solutions owned and operated segregated account reinsurance transformer platform named Artex SAC Limited, acting on behalf of a segregated account, or cell, named Cairney II.

The notes provide their reinsurance coverage to the end of 2023 and have a due date of January 8th 2024, we’re told. This is the same as the first Beazley cyber cat bond deal.

This Cairney II $20 million of cyber cat bond notes appears to be an extension of the first, we suspect.

We’re told the reinsurance coverage is for the same type of cyber risks and as the notes run to the same maturity of the first issuance..

Beazley had previously said it would seek to expand on its first cyber cat bond, so it’s not surprising to learn of this second Cairney II issuance.

We understand the CyberCube risk model was again used for this second Beazley cyber cat bond issuance.

Read about Beazley’s first Cairney cyber cat bond from January 2023.

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