Chubb secures first annual aggregate cyber cat bond, $150m East Lane priced at low-end

Chubb has now successfully priced the first annual aggregate cyber catastrophe bond issuance in the market’s history, securing the targeted $150 million of reinsurance from its new East Lane Re VII Ltd. (Series 2026-1) transaction at the low-end of guidance, Artemis has been told.

International insurance and reinsurance giant Chubb returned to the catastrophe bond market for its second cyber insurance-linked securities sponsorship earlier this month.

Two tranches of notes were initially offered to investors as Chubb sought feedback on either occurrence or annual aggregate protection, testing market appetite for the two forms of cyber reinsurance cover with one or the other expected to be placed.

That test was successful and Chubb received feedback that led it to pursue the annual aggregate tranche of notes, which have now been priced and so the company becomes the first sponsor of a cyber cat bond to provide aggregate reinsurance protection.

Chubb has now secured $150 million in cyber reinsurance protection from this East Lane Re VIII Series 2026-1 cyber cat bond issuance, we understand

The notes will provide the re/insurer with a two year source of fully-collateralized, broad aggregate cyber reinsurance coverage, across two annual risk periods, through calendar year’s 2026 and 2027.

The $150 million Class B tranche of notes will provide Chubb annual aggregate cyber reinsurance protection from an attachment point of $600 million to an exhaustion point of $750 million, with a franchise deductible of $25 million to be cleared for a cyber loss event to qualify.

The $150 million of Class B aggregate cyber cat bond notes come with an initial expected loss of 1.57% and were offered with price guidance ranging from 8.5% to 9.25%.

We’re now told that the $150 million of Class B notes have now been priced to pay investors an initial risk interest spread of 8.5%, so at the low-end of guidance.

As we’ve explained, this new cyber cat bond for Chubb breaks new ground in the catastrophe bond market and introduce a level of diversification into cyber ILS that has not existed in 144A cat bond format before.

The move to test the market’s investor appetite for annual aggregate cyber risk has been a positive one, with Chubb securing the coverage at attractive pricing and potentially now opening up the cat bond market to more issuances in aggregate protection formats.

See details of every cyber catastrophe bond ever issued in the Artemis Deal Directory.

You can read all about this East Lane Re VII Ltd. (Series 2026-1) catastrophe bond from Chubb and every other cat bond issued in the Artemis Deal Directory.