Beazley issues second cyber cat bond

Re/Insurer Beazley has secured an additional $160 million of cyber reinsurance coverage through a second 144A cyber catastrophe bond under Bermuda-based PoleStar Re, taking the total series to $300 million.

Both bonds, which are due in 2026 and 2027, have been listed on the Bermuda Stock Exchange. 

Beazley’s inaugural 144A cyber cat bond was issued earlier this year. The $140 million bond designed to cover remote probability catastrophic and systemic events was also structured by Gallagher Securities. The new mid-year issuance of $160 million takes PoleStar Re series of Rule 144A cyber catastrophe bonds to $300 million.

Gallagher said the cyber cat bonds are becoming a regular product offering and complement the property class for investors. 

“The market has advanced significantly since Gallagher Securities – supported by Gallagher Re Cyber – pioneered the cyber catastrophe bond market in 2023 with over $80m of agency-placed cat light bonds (Cairney I, II and III),” the company said.

Gallagher Re and Gallagher Securities also completed the market’s second retrocession cyber Industry Loss Warranty in May 2024.

Theo Norris, head of cyber ILS, Gallagher Securities commented: “This is testament to the compelling and replicable structure developed in PoleStar Re. There is plenty more to come for the Cyber ILS market, and the trajectory of diversifying capital entering the space is exciting for cedants and investors alike.”

Ian Newman, head of cyber at Gallagher Re said: “We have been accessing the capital markets in cyber insurance since 2017, and it’s remarkable how far we’ve come. Cyber truly is investable with the right structure and knowledge. We remain dedicated to developing further Cyber ILS products for the capital benefit of our clients.”

The listing sponsor  for the securities on the BSX was First Bermuda Securities. 

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