Fidelis Insurance issues $375m of cat bonds

Bermuda-based Fidelis Insurance has issued $375 million of new catastrophe bonds through its Herbie Re programme.

The specialty re/insurer said the notes, which were issued in three tranches, provide four years of US named storm and earthquake losses for its Class A and Class B notes, and two years for its Class C notes. .

“We are pleased to announce that Fidelis Insurance Group has completed the most recent issuance of the Herbie Re Catastrophe Bond programme,” said Ian Houston, Fidelis Insurance Group Chief Underwriting Officer. “These bonds continue to be a crucial part of our strategic capital management and risk mitigation plan.

"Enhancing our overall reinsurance strategy, which includes quota share, excess of loss, and industry loss warranties (ILWs), the Herbie Re Catastrophe Bonds support our strategic underwriting partner The Fidelis Partnership."

Richard Coulson, Deputy Group Chief Underwriting Officer at The Fidelis Partnership, added: “Building on the current Herbie Re Catastrophe Bond programme, we are pleased to have executed the placement alongside Ian Houston and the Fidelis Insurance Group team to bring the latest series to market. This tranche of coverage represents the newest tool employed by Fidelis Insurance Group, supporting The Fidelis Partnership as we continue to capitalize on opportunities across catastrophe-exposed lines of business in 2025 and beyond.”

The catastrophe bond was priced on December 17, 2024, and closed on December 27, 2024. Aon acted as Sole Structuring Agent and Sole Bookrunner for the deal. Willkie Farr & Gallagher (UK) LLP advised as counsel for Fidelis Insurance Group and Herbie Re.