The recently completed $175 million Titania Re Ltd. (Series 2021-2) catastrophe bond issuance is an example of Ariel Re showing its “commitment to delivering value” to all parties, according to the reinsurance firm’s CEO Ryan Mather.
As our readers will be aware, Ariel Re recently closed on the successful second issuance under its Titania Re catastrophe bond program.
The reinsurance returned to the cat bond market in November, hoping to secure $150 million of multi-year catastrophe retrocessional reinsurance from the index-trigger structured Titania Re 2021-2 cat bond issuance.
It was the second catastrophe bond issuance in a year to be sponsored by Ariel Re, with the issuance designed to provide protection to its Syndicate 1910 as the the ultimate ceding company, the underwriting vehicle Ariel Re principally uses for its global reinsurance business.
At closing, Ariel Re’s second cat bond issuance was successfully upsized, with the deal settling to offer the company $175 million of retrocessional protection.
At the same time, the pricing settled below initial guidance, reflecting strong investor support for the deal.
Commenting on the completion of its second catastrophe bond, Ariel Re’s CEO Ryan Mather said, “We’re very pleased to announce the success of Ariel Re’s second cat bond sponsorship. This transaction supports Ariel Re in our mission to be the premier manager of reinsurance risk.
“Titania Re is an important part of our strategy and our return to the cat bond market shows our commitment to delivering value to all parties.”
Daniel Pell, Ceded Underwriter at Ariel Re, also commented, “The strong demand from investors allowed us to upsize our second cat bond from $150 million to $175 million and execute the transaction with confidence; we are encouraged by the continued support for Ariel Re and aim to further build on our relationships with ILS investors.”
The Titania Re 2021-2 cat bond issuance will provide Ariel Re with $175 million of multi-year collateralised reinsurance protection using an indexed industry loss trigger and covers it against losses from North American named storms and earthquakes.
It follows the issuance of the reinsurance firms first cat bond, a $150 million Titania Re 2021-1 issuance from June, which was also a multi-peril industry loss trigger deal designed to provide retrocessional protection and covered the same perils.