Cyber catastrophe bond news

AXIS Capital saw its landmark $75 million Long Walk Reinsurance Ltd. (Series 2023-1) 144A cyber catastrophe bond settle yesterday and CFO Peter Vogt hailed the support of the insurance-linked securities (ILS) investor community.

Envelop Risk’s Capital Markets business continues to gain traction and the firm is close to deploying capital markets capacity via its Augmented Re Class 3A Reinsurer, says Co-Founder and Chief Executive Officer (CEO), Jonathan Spry.

AXIS Capital, the Bermuda headquartered specialty re/insurer, has now successfully priced the very first 144a cyber catastrophe bond and the $75 million Long Walk Reinsurance Ltd. (Series 2024-1) transaction will complete with pricing below the initial target guidance, an important signal of ILS market appetite for cyber risks.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, has now entered the 144A catastrophe bond market with its first cyber deal, seeking $75 million in reinsurance from this PoleStar Re Ltd. (Series 2024-1) cyber cat bond issuance, Artemis can report.

Specialty re/insurer AXIS Capital is now aiming to tighten the issuance pricing for the first 144a cyber catastrophe bond to hit the market, targeting a lower than guidance price for its still $75 million Long Walk Reinsurance Ltd. (Series 2024-1) transaction, Artemis has learned.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, is at an advanced stage of planning for its first full Rule 144a cyber catastrophe bond, with an issuance expected by year-end to tie in with the maturity of its private cyber ILS deals and its cyber reinsurance renewal for January 1 2024, Artemis has learned.

Specialty re/insurer AXIS Capital is set to become the sponsor of the market’s very first 144a cyber catastrophe bond, with a $75 million Long Walk Reinsurance Ltd. (Series 2024-1) transaction being marketed to insurance-linked securities (ILS) funds and investors, Artemis can reveal.

Speaking in Bermuda at the annual Convergence event last week, David Ross of data-driven cyber underwriting company Envelop Risk, explained that the cyber insurance-linked securities (ILS) market has a long-way to grow, given the size of the opportunity and the need for cyber risk capital.

Demand for cyber insurance and reinsurance is expected to continue to grow in the years ahead, but with carriers seemingly at the maximum of what cyber risk they can assume, transferring some of it to the capital markets will be crucial to achieve exponential growth, according to industry experts.

Speaking this afternoon during a renewals focused panel discussion hosted by Aon’s Reinsurance Solutions, Sven Althoff, Member of the Executive Board for P&C at Hannover Re, explained that introducing event-based wordings to cyber insurance could open the doors to broader capital markets and ILS involvement.