Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Ariel Re secures $150m Titania Re cat bond at 14% drop in price


Global reinsurance firm Ariel Re has now finalised its first catastrophe bond to benefit its Lloyd’s of London Syndicate 1910 with a price drop of roughly 14%, as the coupon was fixed at the low-end of reduced guidance for its $150 million Titania Re Ltd. (Series 2021-1) retro cat bond.

ariel-re-logoAriel Re came to the catastrophe bond market with its first transaction towards the end of May.

The Titania Re cat bond saw Ariel Re seeking $150 million of a multi-year retrocessional reinsurance cover against certain losses from U.S., Puerto Rico, U.S. Virgin Islands, D.C. and Canada named storms and earthquakes for the company.

The retrocessional reinsurance and industry loss based protection will run across a three year period, to June 2024.

The transaction did not upsize, remaining at the $150 million, but pricing followed recent cat bond execution trends, falling to the lowest end of guidance.

So, now priced and set to launch next week, the Titania Re cat bond will provide Ariel Re’s Syndicate 1910 with $150 million of annual aggregate retro reinsurance protection, attaching at an index loss level of $1 billion and covering up to $1.33 billion, after a $45 million per-event deductible.

The $150 million of Series 2021-1 Class A notes being issued by Titania Re Ltd, which have an initial expected loss of 1.98%, were initially offered to investors with coupon price guidance in a range from 5% to 5.5%, but that range was updated at a lower level of 4.5% to 5% last week.

Now, sources told us that the pricing has been finalised and the coupon was fixed at the low-end of reduced guidance, at 4.5%.

That implies a roughly 14% drop in pricing from the initial mid-point, which is aligned with the experience of other recent cat bond sponsors.

You can read all about this first catastrophe bond from Ariel Re, the $150 million Titania Re Ltd. (Series 2021-1), as well as every other cat bond ever issued in the Artemis Deal Directory.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.