The $75 million Arthur Re Ltd. – Woody Re 2026-1 catastrophe bond issuance that is coming to market to provide industry-loss triggered multi-peril reinsurance to benefit the Fidelis Partnership linked Syndicate 3123 at Lloyd’s, is now targeted for lower pricing, Artemis can report.
This Woody Re 2026-1 catastrophe bond launched to investors earlier this month and is coming to market via Gallagher Re’s new Arthur Re Ltd. platform, which specialises in industry index deals and aims to make their issuance more cost effective and efficient.
It is the first catastrophe bond that will provide its protection to Syndicate 3123, the Lloyd’s structure launched in 2024 by the Fidelis Partnership in collaboration with capacity partner Pelagos Insurance Capital (formerly Fidelis Insurance).
The target size of the issuance remains unchanged, with Arthur Re Ltd. still offering a $75 million tranche of Class A notes on behalf of its segregated account named Woody Re 2026-1.
But, we’re now told that the risk interest spread guidance has been lowered to the bottom end of the initial range, as more attractive price execution is sought for the deal.
The Woody Re 2026-1 cat bond notes are designed to provide the Fidelis Partnership linked Syndicate 3123 at Lloyd’s with a source of catastrophe reinsurance against losses from named storms, earthquakes, severe thunderstorms, winter storms and wildfire events in part of North America on an annual aggregate, industry loss index trigger basis, over a three year term to the end of June 2029. Full details of the coverage can be found in the Deal Directory entry.
The $75 million of Woody Re 2026-1 Class A notes have an initial expected loss of 3.88% and were first offered to investors with price guidance for an initial risk interest spread of between 8.25% and 9%.
We’re now told the price guidance has been lowered and fixed at the bottom-end of 8.25%, indicating a chance of strong execution for the first catastrophe bond to benefit the Fidelis Partnership syndicate.
You can read all about this new Arthur Re Ltd. – Woody Re 2026-1 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.
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