Fidelis prices $75m Herbie Re 2026-1 aggregate quake cat bond in lower-half of guidance

Fidelis Insurance has now secured the targeted $75 million in US earthquake retrocessional reinsurance on a collateralized basis through its new Herbie Re Ltd. (Series 2026-1)  catastrophe bond, as the notes have now been priced with the spread finalised within the lower-half of initial guidance, Artemis has learned.

Fidelis returned to the catastrophe bond market at the end of December targeting $75 million or greater in fully-collateralized retrocessional US earthquake protection from the capital markets.

We’re told the size target has not changed and Fidelis Insurance has now secured the targeted addition to its retro program with this cat bond.

This cat bond began marketing with what looked set to be relatively low spread multiples, so it’s perhaps no surprise to learn that it has now priced within the initial guidance range, albeit within the lower-half of it.

Once settled, this will be the the eighth catastrophe bond in the Herbie Re series of transactions sponsored by Fidelis Insurance, since it first entered the cat bond market back in 2020.

With the Herbie Re Series 2026-1 Class A cat bond notes now priced, Fidelis has secured itself almost four years of annual aggregate US earthquake retrocessional reinsurance protection on an industry-loss trigger basis.

The Herbie Re Series 2026-1 Class A cat bond notes would attach their coverage from $20 billion and exhaust at $40 billion, while there is a $5 billion franchise deductible that must be breached for an event to qualify for aggregation.

The $75 million of Class A notes come with an initial expected loss of 2.37% and were at first offered to investors with price guidance in a range from 4% to 4.75%.

We now understand the notes priced late last week to pay investors an initial risk interest spread of 4.25%, so in the lower-half of guidance.

Fidelis continues to leverage catastrophe bond investor appetite as a way to strategically layer retro protections to hedge its peak natural catastrophe peril exposures.

With pricing looking attractive again, it would be no surprise to see the company back to sponsor additional cat bonds later in 2026.

Read all about this Herbie Re Ltd. (Series 2026-1)  catastrophe bond and almost every other cat bond deal ever issued in the Artemis Deal Directory.