Cyber insurance-linked securities news

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.

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.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, has now added a third privately placed cyber catastrophe bond, taking its cyber cat bond coverage to $81.5 million after securing a further $16.5 million in cyber reinsurance from the capital markets through a Cairney III issuance.

This year feels like a watershed moment for the cyber insurance-linked securities (ILS) market, with tangible advances in use of ILS capital to support cyber risk underwriting, while cyber models have reached a level of maturity that promises there is much more to come, Brittany Baker of CyberCube told Artemis.

Independent reinsurance broker Lockton Re has called for cyber reinsurance to be simplified, saying that this will help to solve the capacity supply for cyber risks, while also opening up capital markets and ILS capacity avenues.