The Fidelis Partnership’s debut Woody Re cat bond an “important step” as syndicate grows: Woods

The recently settled $75 million Arthur Re Ltd. – Woody Re 2026-1 catastrophe bond represents an “important step” for The Fidelis Partnership in building out reinsurance capacity to support its Syndicate 3123 at Lloyd’s as it grows, according to David Woods, Head of Portfolio & Exposure and Ireland Chief Executive Officer.

It is the first catastrophe bond to provide reinsurance 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).

As we’ve been reporting, the $75 million Woody Re 2026-1 catastrophe bond was initially launched to investors earlier in June, eventually securing that targeted multi-peril North American reinsurance coverage at the low-end of price guidance for The Fidelis Partnership.

The now issued $75 million of Woody Re 2026-1 Class A cat bond notes 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, running across a three year term to the end of June 2029.

The notes were issued by 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.

Having launched to investors with price guidance for an initial risk interest spread of between 8.25% and 9%, the Woody Re 2026-1 cat bond notes were eventually priced at 8.25%, indicating strong investor demand and execution for the deal’s sponsor.

The Fidelis Partnership said today that its first successful catastrophe bond sponsorship “represents another important milestone” in the growth of its business.

Syndicate 3123 underwrote approximately $200 million of gross written premium in its first year of 2024 and has now grown to an approved gross written premium of more than $1 billion for 2026.

The cat bond demonstrates a “disciplined approach to capital management,” complementing its traditional reinsurance with capacity from the capital markets via catastrophe bond investors, and now being part of a strategy to “build a diversified and resilient protection programme to support its continued growth.”

Commenting on the successful debut cat bond David Woods, Head of Portfolio & Exposure and Ireland Chief Executive Officer at The Fidelis Partnership, said, “Securing this cat bond protection for Syndicate 3123 is an important step in building out a diversified, resilient reinsurance programme as the Syndicate continues to grow.

“The strong investor demand and pricing we achieved reflects confidence in TFP’s underwriting and the quality of our portfolio.

“Accessing the capital markets through this structure gives us another efficient tool to manage risk alongside our traditional reinsurance partnerships, and we look forward to continuing to build on this relationship with Gallagher Re and Arthur Re going forward.”

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.