Herbie Re Ltd. Series 2020-2

The market is anticipating specialty insurance and reinsurance company Fidelis will benefit from recoveries under two of its Herbie Re catastrophe bonds, as losses from hurricane Ian and the Tukey earthquake are expected to erode some of the principal of two tranches of notes.

The maturity date has been extended for one of the classes of notes issued under the Herbie Re Ltd. catastrophe bond program, which is sponsored by Specialty insurance and reinsurance company Fidelis.

Catastrophe bonds sponsored by specialty insurance and reinsurance company Fidelis Insurance Holdings Limited have been marked down by as much as 10%, or slightly more, as industry loss expectations for hurricane Ida rise, while some of the other exposed cat bonds have also seen more price declines.

Fidelis is now set to secure $275 million of fully collateralised property catastrophe reinsurance from its second visit to the catastrophe bond market, as the Herbie Re Ltd. (Series 2020-2) issuance was priced at attractive levels and the sponsor seemed to value price over size in the end.

The second catastrophe bond from specialty insurance and reinsurance company Fidelis Insurance Holdings Limited may increase in size before close, as its target for the Herbie Re Ltd. (Series 2020-2) issuance has risen to as much as $300 million.

Fidelis has returned to the catastrophe bond market for its second transaction, as the company looks to embed the capital markets more deeply within its reinsurance program arrangements with a $175 million Herbie Re Ltd. (Series 2020-2) issuance.