Herbie Re Ltd

With the recent successful completion of its fifth catastrophe bond in the Herbie Re series of deals, Fidelis Insurance Group finds the cat bonds offer a “critical component” of its capital management and protection arrangements, Ian Houston, Chief Underwriting Officer has said.

Fidelis Insurance has now finalised its latest catastrophe bond Herbie Re Ltd. (Series 2024-1) to provide the originally targeted $150 million of industry-loss triggered retrocession, but at significantly reduced pricing as the spreads fell to the bottom of the twice reduced range.

Fidelis Insurance has lowered the spread guidance for its new catastrophe bond issuance for the second time, now aiming to secure the targeted $150 million of industry-loss triggered retrocession from the Herbie Re Ltd. (Series 2024-1) cat bond at a pricing level further below the initial guidance.

Having been out in the catastrophe bond market with its latest issuance for a fortnight, specialty insurance and reinsurance company Fidelis Insurance has now lowered the guidance for the deal, aiming to secure the targeted $150 million of industry-loss triggered retrocession from the Herbie Re Ltd. (Series 2024-1) cat bond at pricing below the initial […]

Specialty insurance and reinsurance company Fidelis Insurance is back in the catastrophe bond market, seeking $150 million or more in capital markets backed and industry-loss triggered retrocessional reinsurance, with a Herbie Re Ltd. (Series 2024-1) cat bond issuance.

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.

In a clear signal of catastrophe bond market pricing and cat bond investor demand for adequate returns, Fidelis’ new Herbie Re Ltd. (Series 2022-1)  catastrophe bond has been priced at a below-target size of $80 million, with the risk interest spread fixed at roughly 30% above the initially marketed mid-point.

Despite the fact the initial risk interest spread offered for Fidelis’ new Herbie Re Ltd. (Series 2022-1)  catastrophe bond had been raised roughly 30% above the initial mid-point of price guidance, the targeted size has been reduced somewhat in the final stage of marketing the deal, Artemis is told.

The initial risk interest spread for Fidelis Insurance’s new Herbie Re Ltd. (Series 2022-1) North America earthquake focused catastrophe bond has been lifted roughly 30% during marketing, in another sign of cat bond investors’ demand for higher returns.