Oak Global, the specialist Lloyd’s underwriting company, is in the catastrophe bond market as a sponsor for the first time seeking protection from the capital markets through a $75 million 144A issuance of Arthur Re Ltd. – Quercian Re 2026-1 cat bond notes, Artemis understands.
This offering is being issued by Arthur Re Ltd., which we understand to be an Artex Risk Solutions managed structure that is designed to make accessing the 144A catastrophe bond market more efficient for clients.
Arthur Re Ltd. is a Bermuda domiciled unrestricted special purpose insurer (SPI) that was established last year, so is able to transact with multiple cedants and can issue insurance-linked securities (ILS) in a number of formats, including 144A catastrophe bond notes such as this deal.
Arthur Re Ltd. is offering an initially $75 million tranche of notes on behalf of its segregated account named Quercian Re 2026-1, we understand.
These notes are designed to provide a source of fully-collateralized, multi-year and multi-peril retrocession from the capital markets, to provide a source of protection to Syndicate 2834, which is acting through its managing agent Polo Managing Agency.
The cat bond notes will provide the Oak linked Syndicate 2834 at Lloyd’s with a source of retrocessional reinsurance against losses from US and Canada named storms and earthquakes, as well as US wildfire events, over a three year term to the end of May 2029, we are told.
While the Oak Reinsurance Syndicate 2834 is said to be the ceding company to this cat bond, it is possible that the protection will benefit broader Oak Global portfolios as well.
The protection from the currently $75 million of Quercian Re 2026-1 catastrophe bond notes that Arthur Re Ltd. is issuing will be structured on an annual aggregate and industry loss trigger basis, sources said.
The $75 million of Quercian Re 2026-1 cat bond notes will feature a $15 million franchise deductible, while their attachment point is said to be at $240 million of aggregate losses and exhaustion at $365 million.
Which gives the notes an initial attachment probability of 4.6%, an initial expected loss of 3.29% and they are being offered to investors with price guidance for a spread of between 7.25% and 8%, we have learned.
Oak Global is a new sponsor to the catastrophe bond market and given its growth ambitions it is perhaps natural for it to have made its debut venture into the capital markets relatively soon after its launch.
With a seasoned management and underwriting team, a number of whom have worked for cat bond sponsors in the past, the insurance-linked securities (ILS) market is likely to be receptive to Oak’s first catastrophe bond offering.
You can read all about this new Arthur Re Ltd. – Quercian Re 2026-1 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.
