Having recently secured its upsized target of $90 million of worldwide aggregate retrocession through the new   catastrophe bond issuance, senior executives of Fidelis Insurance and managing general underwriter (MGU) Fidelis Partnership have hailed the beneficial protection and capital support it provides.As we’ve been reporting since early May, Fidelis Insurance ventured back to the catastrophe bond market with an initial target to secure $75 million of broad aggregate retrocessional reinsurance for perils across the globe with this new Herbie Re 2025-1 deal., with $90 million of retrocessional protection from the capital markets set as an updated target for the deal.That upsized target was achieved and this Herbie Re 2025-1 catastrophe bond has now settled to provide Fidelis a $90 million source of multi-peril and region focused retrocession, while the notes were priced to pay cat bond investors an initial risk interest spread of 31%, which was the bottom-end of the price guidance range the notes had been offered with.

As a result, the Herbie Re 2025-1 catastrophe bond notes will provide Fidelis with $90 million of reinsurance coverage for many of the world’s peak catastrophe perils, with the retro protection structured on an annual aggregate and industry loss index basis, across a two-year term and two annual risk periods to June 2027.Read all about the transaction in .Commenting on the successful completion of its latest catastrophe bond, the seventh series of notes issued under the Herbie Re program, Ian Houston, Fidelis Insurance Group Chief Underwriting Officer, said, “Continuing to build on the current Herbie Re Catastrophe Bond program, we are pleased to announce the most recent issuance for Fidelis Insurance Group.

“These bonds are a vital part of our extensive capital management and external protection strategy, offering significant capital efficiency and safeguarding against severe events.This issuance enhances our overall reinsurance strategy, which encompasses quota share agreements, excess of loss treaties, and industry loss warranties.” Recall that Fidelis Insurance separated its balance-sheet insurance business and the Fidelis Partnership MGU back in 2022, since when the pair are separately owned and managed but closely work to support each others risk, capital and business needs., which is evident in the broad range of capital tools the pair utilise, to support the expanding underwriting capacity needs of the Fidelis brands, with catastrophe bonds just one form of capital tool that Fidelis utilises.

Richard Coulson, Deputy Group Chief Underwriting Officer at The Fidelis Partnership, also commented, “We are pleased to have partnered closely with Ian Houston and the team at Fidelis Insurance Group, to bring the latest series of the Herbie Re Catastrophe Bond program to market.“This new tranche of coverage builds on the strength of the existing program supporting The Fidelis Partnership as it continues to capitalize on opportunities across catastrophe-exposed lines of business in 2025 and beyond.” With currently $845 million of catastrophe bond backed protection from Herbie Re cat bond issuances in-force after the addition of this new $90 million deal, .Find information on .

Recall that, this new Herbie Re 2025-1 cat bond issuance seems to be a partial renewal of the worldwide annual aggregate retrocession that Fidelis’ $150 million catastrophe bond had provided.That 2021-1 cat bond was impacted by losses, with after events including 2024 hurricanes and the January 2025 California wildfires resulted in qualifying annual aggregate losses under the deal exceeding its attachment point.That 2021 deal also matured recently.

So it has been encouraging to see Fidelis looking to include catastrophe bonds within its worldwide aggregate reinsurance protection again and for the market to have welcomed the company back, resulting in this deal pricing at the low-end of guidance.Read all about this   catastrophe bond and you can read about this and every other cat bond deal in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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