Beazley leverages Bermuda to place $300m cyber catastrophe bond with novel structure

Global specialty insurer Beazley has successfully closed a $300 million cyber catastrophe bond, marking its latest issuance since entering the cyber ILS market in January 2023 and underscoring growing investor appetite for the risk class.

Its latest 144A cyber catastrophe bond provides cover for remote probability catastrophic and systemic cyber events. In a first for cyber bonds, the structure includes three sub-layers which run for a three-year term through to the end of 2028.

Last month, Beazley announced that in 2026 it will move beyond cyber catastrophe bond issuance, into cyber risk securitisation supported by a dedicated ILS fund.

To date, Beazley has $670 million in cyber catastrophe bonds and more than $1 billion of cyber excess of loss cover – the market’s largest and most comprehensive programme, it said.

Beazley chief underwriting officer Paul Bantick said: “Investor interest in our cyber catastrophe bond issuance continues to be strong and this latest bond is evidence of our ability to drive sustained growth in the cyber ILS market.

"We will be leveraging our new office in Bermuda in 2026, to go a step further and become a leader in investment, transformation and securitisation of cyber risks across the wider market. It’s an exciting time in the cyber ILS world and I am delighted that Beazley continues to pioneer and lead.”

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