Beazley, the London headquartered specialty insurance and reinsurance company, is aiming to upsize on the amount of reinsurance its latest 144A cyber catastrophe bond provides it, with the issuance now targeted at $280 million, Artemis understands from sources.Beazley returned to the catastrophe bond market for this fourth takedown under PoleStar Re last month, as the company aims to secure more layered multi-year capital markets-backed cyber reinsurance protection, with staggered maturities, through sponsorship of cyber cat bonds.As we explained, this latest PoleStar Re cyber cat bond sees Beazley looking to build the capital markets participation in its cyber reinsurance tower higher up, starting from a $1 billion attachment with this new deal, which is higher than the previous PoleStar’s.The initial target was to secure $200 million or more in excess-of-loss cyber reinsurance protection from the capital markets with this PoleStar Re 2026-1 catastrophe bond issuance.

Now, we’re told the tranche sizes have increased in all three cases, with Beazley now seeking $280 million of coverage from its latest cyber cat bond.At the same time and aligned with the tightening trend seen, two of the three tranches are now being offered with lower spreads, sources have told us, while a third has narrowed guidance towards or just below their initial mid-point..

PoleStar Re Ltd., the Bermuda based special purpose insurer (SPI), is now aiming to sell $280 million of notes across three tranches of Series 2026-1 cyber cat bonds to provide Beazley with cyber reinsurance coverage on an indemnity trigger and per-occurrence basis, over three years through to the end of 2028.Beazley’s first 144A cyber cat bond, the $140 million PoleStar Re 2024-1, is scheduled for maturity in January 2026, so this new issuance could now double that expiring coverage.What was a $75 million Class A tranche of notes are now offered at $120 million in size, we are told.

These notes have an initial expected loss of 0.82% and were first offered with price guidance in a range from 7% to 8%, but that has now declined to 7%.What was a $75 million Class B tranche of notes would are now targeted to be $100 million in size.These notes have an initial expected loss of 1.31% and were first offered with price guidance in a range from 8.75% to 9.75%, which has now narrowed to between 9% and 9.25%.

What was the final $50 million Class C tranche of notes are now targeted to be $60 million in size, we understand.These notes come with an initial expected loss of 2.05% and were first offered with price guidance in a range from 10.75% to 11.75%, but this has now fallen to between 10.5% and 10.75%.As a result, this looks like it is heading to be a very successful cyber cat bond sponsorship for Beazley, with the amount of cyber reinsurance provided by this deal likely to upsize and the pricing potentially set to come in lower than initial expectations.

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