Ariel Re re-enters ILS market with upsized cat bond on ‘strong’ investor demand

Bermuda-based multi-line reinsurer  Ariel Re has re-entered the catastrophe bond market citing “strong demand” from ILS investors.

Ariel Re has sponsored a 144A index-triggered cat bond issued by Bermuda special purpose insurer Titania Re.

Titania Re will provide $175 million of multi-year collateralised reinsurance cover to Ariel Re using an indexed industry loss trigger under the Series 2021-2 Notes, protecting against North American named storms and earthquakes.

It is Ariel Re’s second foray into the cat bond market after the placement of its first cat bond Titania Re (Series 2021-1) earlier this year.

The cat bond closed on December 21, with TigerRisk Capital Markets & Advisory as sole structuring agent and joint bookrunner, with Aon Securities acting as joint bookrunner.

Ryan Mather (pictured), chief executive officer of Ariel Re, said: “We’re very pleased to announce the success of Ariel Re’s second cat bond sponsorship. This transaction supports Ariel Re in our mission to be the premier manager of reinsurance risk. Titania Re is an important part of our strategy and our return to the cat bond market shows our commitment to delivering value to all parties.”

Daniel Pell, ceded underwriter at Ariel Re, added: “The strong demand from investors allowed us to upsize our second cat bond from $150 million to $175 million and execute the transaction with confidence; we are encouraged by the continued support for Ariel Re and aim to further build on our relationships with ILS investors.”

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