Ariel Re, the Bermuda headquartered global reinsurer, has now secured the upsized $150 million of multi-peril retrocessional reinsurance protection from its fifth catastrophe bond, , Artemis can report.This latest cat bond from Ariel Re is the first time that the reinsurer has included wildfire risk as a covered peril under its Titania Re Ltd.series of deals, so it’s encouraging to see that accepted by the cat bond investor base.This will be the fifth Titania Re catastrophe bond to benefit Ariel Re since the firm made its debut in the market back in 2021.

initially looking to secure at least $125 million of multi-peril retrocessional reinsurance through this new cat bond deal.As we later reported, Ariel Re’s target had lifted with between the initial $125 million and a larger $150 million of protection being sought from this deal.Now, we’re told that the upsized $150 million of retrocession has been secured, while at the same time the Titania Re 2025-1 cat bond notes have been priced with one finalised below and one within their respective initial guidance ranges.

As with all of Ariel Re’s catastrophe bonds, once again the firm’s Lloyd’s Syndicate 1910 is the ceding company to this new deal, while Bermuda based special purpose insurer (SPI) Titania Re Ltd.will be the issuer.In the past Ariel Re’s catastrophe bonds have all covered the peak perils of U.S.

50 state, Puerto Rico, U.S.Virgin Islands, D.C.and Canada named storms and earthquakes and this one does too.

But, for the first time the reinsurer has also added wildfire risks to this new cat bond, seeking coverage for that peril across the U.S.and District of Columbia.With pricing completed, Titania Re will now move ahead to issue two tranches of Series 2025-1 notes that will be sold to cat bond investors and the proceeds will collateralize the reinsurance agreements between the issuer and the ceding insurer Syndicate 1910.

Both tranches of Titania Re Series 2025-1 notes are set to provide Ariel Re with annual aggregate and industry loss triggered retro protection, over a four-year term and four risk periods.What was initially targeted as a $50 million Class A tranche of Series 2025-1 notes have now been finalised at $75 million in size, we are told.The Class A notes have an initial base expected loss of 2.25% and were first offered to cat bond investors with price guidance in a range from 6.75% to 7.25%, which then fell to an updated range of 6.25% and 6.75% and we’re now told have been priced at the lowest end, for a spread of 6.25% to be paid to investors.

The Class B tranche of Series 2025-1 notes remained at their initial $75 million.They have an initial base expected loss of 6.35% and they were first offered to cat bond investors with price guidance in a range from 15.75% to 16.5%, which was later fixed at the single figure of 16.25% and we’re now told that is where the spread to be paid has been finalised.As we had previously said, this catastrophe bond slipped beyond its initially targeted settlement date, which was in June and will now settle on July 1st, making this a third-quarter deal for our reporting (we report by date of settlement, as that is when a cat bond issuance is completed).

However, this does not affect .That still stands.It is good to see the catastrophe bond market investor base accepting another deal with wildfire included this year, as the market responds to the clear need for protection for that peril.

Read all about this new  catastrophe bond from Ariel Re, as well as details on over 1,000 other cat bond transactions in the extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.