Centauri Insurance and Lilypad Insurance are the sponsors and beneficiaries of the recently completed $30 million private catastrophe bond transaction, with the transaction providing the ceding companies a source of named storm reinsurance protection.We reported earlier this week that Bermuda-domiciled special purpose insurer Sailfish Re Ltd.had issued a $30 million tranche of private catastrophe bond notes, under a Koi Re Series 2025-1 arrangement.At the time we learned about this new private cat bond deal, we did not have the details of the sponsor or beneficiaries of the capital markets backed reinsurance protection it will provide.

We understood that Lockton Re Capital Markets, the specialist banking and ILS arm of the independent broking group, had acted as the structuring agent and bookrunner for this Koi Re 2025-1 private cat bond issuance.We also knew at the time that this private cat bond will provide a one year source of collateralized reinsurance protection for the beneficiaries to the deal, while the $30 million of notes were privately placed as discount zero-coupon 4(a)2 notes, priced at 90.5% of par.Now, it’s become apparent that the ceding companies to this Koi Re private cat bond are Lilypad National Insurance Company and Centauri Specialty Insurance Company, two specialist property insurers.

“The successful placement of Koi Re underscores our commitment to innovative risk management solutions,” Ricardo Espino, CEO of Lilypad Insurance stated.“By accessing the capital markets via our inaugural catastrophe bond, we have introduced a new capital source to better protect our policyholders and ensure financial resilience against catastrophic events as we continue to grow our operations.” The $30 million of Koi Re 2025-1 notes issued by Sailfish Re Ltd.will provide these two ceding companies with a single year of collateralized named storm and hurricane reinsurance protection, the companies have now explained.

The area of reinsurance coverage is for the key US states these insurers operate in, being protection against named storm losses in Texas, Louisiana, Mississippi, Alabama, Florida, and South Carolina, as well as Hawaii.In addition, it’s now know that this private cat bond has been structured to provide its reinsurance cover on an indemnity trigger and per-occurrence basis over the one year term to May 31st 2026.The Sailfish Re Ltd.

unrestricted SPI is actually a Lockton owned structure that has been used by the broker for arranging collateralized reinsurance arrangements for its clients in the past and it is managed by Strategic Risk Solutions (SRS) on Lockton Re’s behalf.Notably, we understand that the Koi Re Series 2025-1 issuance is the first private catastrophe bond to be issued under Sailfish Re Ltd.Zach Breslin, Head of Lockton Re Capital Markets, commented, “We are proud to support Centauri and Lilypad in this important transaction.

Koi Re exemplifies how insurers can effectively access the capital markets to manage exposure to natural disasters and is the latest example of Sailfish Re’s utility in delivering bespoke funded solutions to address client needs.” Sailfish Re was established by Lockton Re to give its clients the ability to “rapidly access broader pools of capital through an independently-managed, established platform,” the company explained.This is the first catastrophe bond transaction ever to benefit insurers Centauri and Lilypad.They said that, “This strategic initiative marks a significant step in leveraging the capital markets to enhance the companies’ risk management strategies.” Further explaining that accessing the cat bond market for the first time, “enables the companies to diversify their risk transfer tools and secure additional capacity to support policyholders in the event of a significant named storm event.” Recall that, .

It’s encouraging to see yet another new entrant to the catastrophe bond market in 2025.While this first issuance for these insurers is a private cat bond, or cat bond lite, that is often a way for sponsors to test out the market before perhaps in future looking to lock-in longer-term reinsurance from the capital markets through a fully syndicated Rule 144A catastrophe bond deal.Read about this $30 million private cat bond transaction and most other catastrophe bonds in our Artemis Deal Directory.

What data points we have on this arrangement will be included in our ..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.