The recently completed $150 million Titania Re Ltd. (Series 2021-1) catastrophe bond is an important part of Ariel Re’s strategy, according to the reinsurance firm’s CEO Ryan Mather, who also said that partnership with ILS investors is beneficial to the company, its clients and its owners.
Ariel Re entered the catastrophe bond market for the first time with the Titania Re transaction towards the end of May.
With catastrophe bond market conditions positive for sponsors and investor appetite strong for new issues, Bermuda headquartered reinsurance firm Ariel Re benefited from this as the pricing settled at roughly 14% below the initial guidance.
The Titania Re cat bond will provide Ariel Re with a US $150 million source of multi-year collateralised retrocessional reinsurance protection, on an industry loss index trigger basis.
Ariel Re now benefits from three-years of reinsurance protection against losses from North American named storms and earthquakes, thanks to the successful issuance.
Ryan Mather, Chief Executive Officer of Ariel Re, commented on the issuance of Ariel Re’s first catastrophe bond, saying, “We’re very pleased to announce the success of Ariel Re’s entrance into the cat bond market. This transaction supports Ariel Re in our mission to be the premier manager of reinsurance risk.”
Mather expanded saying, “Titania Re is an important part of our strategy and this partnership with valued ILS investors will benefit those investors, Ariel Re’s clients and our owners.”
The Titania Re catastrophe bond closed earlier this week and so is now fully-included in our Deal Directory and range of cat bond market charts and visualisations.
Referring to the success of the issuance, Matthew Twilley, Head of Ceded at Ariel Re, also said, “The strong demand from investors enabled us to execute the transaction with confidence; we are encouraged by this support for Ariel Re and aim to build on our relationships with ILS investors.”
TigerRisk Capital Markets & Advisory acted as Sole Structuring Agent and Joint Bookrunner for thee Titania Re cat bond issuance, with Aon Securities LLC acting as Joint Bookrunner.