New Herbie Re cat bond ‘critical’ to capital and protection strategy: Fidelis

Bermuda-based Fidelis Insurance Holdings has closed a new Herbie Re catastrophe bond, granting the firm with $150 million of collateralised reinsurance protection. The chief underwriters emphasised that these cat bonds are a “critical component” of its capital management and protection strategy, enabling it to capitalise on opportunities across catastrophe exposed lines of business in 2024 and beyond.

The fifth series of notes issued by its Bermuda-based special purpose insurer Herbie Re closed on February 22. The cat bond was priced on February 15. Aon acted as Sole Structuring Agent and Sole Bookrunner for the deal. Willkie Farr & Gallagher (UK) LLP advised as counsel for Fidelis Insurance Group and Herbie Re.

The Series 2024-1 Notes issued will be exposed to insured industry losses resulting from named storm and earthquake covered events occurring in the fifty states of the US and the District of Columbia, Puerto Rico and the US Virgin Islands, as reported by PCS, on an annual aggregate basis. 

Fidelis said it has the option to renew the Series 2024-1 Notes on an annual basis, up to a maximum of four complete annual risk periods.

Ian Houston, Fidelis Insurance Group chief underwriting officer, said: “Fidelis Insurance Group is excited to have in place the latest issuance under the Herbie Re Catastrophe Bond program. These bonds remain a critical component of our comprehensive capital management and outwards protection strategy, providing important capital relief and downside protection. They complement our other purchases such as quota share, excess of loss and ILWs to support the work of Fidelis MGU.” 

Richard Coulson, deputy group chief underwriting officer at Fidelis MGU, said: “We have worked in close alignment with the Fidelis Insurance Group to bring this series to market which builds on their current Herbie Re Catastrophe Bond program. This tranche of cover is the latest tool employed by Fidelis Insurance Group to enable us to capitalise on opportunities across catastrophe exposed lines of business in 2024 and beyond.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.