Lumen Re’s, successful sponsorship of its first Rule 144A catastrophe bond, the $175 million Photon Re Ltd. (Series 2026-1) issuance, represents a natural evolution of the firm’s risk‑transfer strategy, and marks an important strengthening of its overall risk framework, CUO Klaus Sapelza said today.
This new cat bond issuance provides Lumen Re with a $175 million multi-year source of fully-collateralized retro reinsurance protection against the peak North American perils of named storms and earthquakes, on an industry loss trigger and annual aggregate basis over a four year term to the end of February 2030.
“The placement enhances Lumen Re’s existing retrocession program and strengthens the company’s ability to manage its peak exposures,” Lumen Re said in a statement.
Klaus Sapelza, Chief Underwriting Officer of Lumen Re, commented: “Photon Re is a natural evolution of our risk‑transfer strategy. It enables us to manage our peak exposures in an efficient and transparent manner, while supporting a market segment that benefits from a wider range of sponsors.
“We view this as a deliberate use of current market conditions and an important strengthening of our overall risk framework.”
Furthermore, Photon Re also underscores Lumen Re’s continued commitment to disciplined risk management and reflects the conducive environment that’s displayed across the catastrophe bond market today, where transparent, index‑based structures remain in high demand.
“As a long‑standing participant in the ILS market, LGT Capital Partners – through its dedicated ILS manager, LGT ILS Partners – views the addition of high-quality catastrophe bond issuances from diversified sponsors as supportive of overall market depth and resilience. As an integral part of the LGT ILS platform, Lumen Re is well positioned to contribute to this continued development,” Lumen Re added.
In addition, the Photon Re Series 2026-1 transaction was structured and placed by GC Securities, the investment banking and capital markets unit of reinsurance broker Guy Carpenter.
As a reminder, you can read all about this new Photon Re Ltd. (Series 2026-1) catastrophe bond and over 1,000 other cat bond transactions in our extensive Artemis Deal Directory.
