The move marks Beazley’s first foray into the 144A bond market and serves as an expansion of its cyber catastrophe bond programme, which amounted to US$81.5 million in 2023.
The PoleStar Re Ltd. Series 2024-1 Class A cyber catastrophe bond notes offer Beazley protection against remote probability catastrophic and systemic events. The coverage is structured with an indemnity trigger on a per-occurrence basis and is set to run for a two-year term, concluding at the end of 2025.
The milestone represents only the second full 144A cyber catastrophe bond to date, following AXIS Capital’s $75 million Long Walk Reinsurance Ltd. (Series 2023-1) transaction.
Gallagher Securities played a crucial role in this endeavor, serving as the sole structuring and book building agent. Additionally, risk modeling was conducted by Moody’s RMS, with CyberCube providing a second view of the risk. Mayer Brown acted as the deal counsel for the transaction.For further details on this deal and numerous other catastrophe bonds, interested parties can refer to the comprehensive list available in the Artemis Deal Directory.
Paul Bantick, Global Head of Cyber Risks, Beazley, commented: “The cyber market is predicted to treble in size over the next four years. To get there we must keep evolving as a market to ensure we can provide cover for catastrophic events as demand and risk grows. Catastrophe bonds and the ILS market are vital to this.“Investor interest in our issuance has been strong and their support is testament to the confidence they have in our ability to effectively manage cyber risk.”
He added: “Building on the success of the market’s first cyber catastrophe bond programme in 2023, we expect to continue scaling our presence in the cyber insurance linked securities market, encouraging others to do the same.”
