Ariel Re returns to cat bond market
Bermuda reinsurer Ariel Re has sponsored a 144A index triggered cat bond. Its second-ever catastrophe bond was again issued by special purpose insurer Titania Re, which will provide $175 million of multi-year collateralised reinsurance cover to Ariel Re.
The bond uses an indexed industry loss trigger, protecting against North American named storms and earthquakes.
The issue follows the successful placement of Ariel Re’s first cat bond earlier this year, Titania Re Ltd. (Series 2021-1), a single $150m tranche of Series 2021-1 Class A notes.
The new cat bond successfully closed on Tuesday. TigerRisk Capital Markets & Advisory acted as sole structuring agent and as joint bookrunner, along with Aon Securities LLC.
Ryan Mather, chief executive officer of Ariel Re, said: “This transaction supports Ariel Re in our mission to be the premier manager of reinsurance risk. Titania Re is an important part of our strategy, and our return to the cat bond market shows our commitment to delivering value to all parties.”
Daniel Pell, ceded underwriter at Ariel Re, added: “The strong demand from investors allowed us to upsize our second cat bond from $150 million to $175 million and execute the transaction with confidence; we are encouraged by the continued support for Ariel Re and aim to further build on our relationships with ILS investors.”
