Gallagher Re’s new Arthur Re Ltd. platform adds another dimension to the reinsurance broker’s global retrocession offering, and according to Jason Bolding, Global CEO of Gallagher Securities, the platform allows the firm to bring clients more flexible capital solutions while streamlining the issuance process for index-based catastrophe bonds.
To begin, Bolding explained the primary market drivers that triggered the launch of the platform,
“The idea behind this platform, Arthur Re, was that speed matters in the cat bond market. If you’re going through the issuance process of putting together a cat bond, and spreads move while you’re still structuring the transaction, it becomes more expensive than you expected. We’ve seen that happen historically; in fact, in 2024, index spreads went up quite a bit for a period of time. So, the faster you get to market, the lower your execution risk is,” the CEO told Artemis.
“What Arthur Re does is streamline the process for issuing index-based cat bonds, so sponsors can come to market faster, more efficiently, and therefore lower their execution risk. That’s really what we’re trying to do with the platform,” he continued.
The executive also emphasised that many buyers across the market are also used to industry loss warranty (ILW) trading, noting that Gallagher wanted to specifically mix the simplicity of ILW trading with a fully syndicated 144A transaction.
“We wanted to marry the benefits, so you get the ease of ILWs alongside a fully syndicated 144A cat bond without giving up the advantages of that broader capital markets execution.”
By removing structural friction, the platform fundamentally changes how Gallagher Securities can support its retrocession clients, compressing a multi-week process into a matter of days.
“I think it adds another dimension to our global retro offering, allowing us to bring clients more flexible capital solutions. If you look at it, it allows a cedant to be much more tactical. What I mean by that is Arthur Re can bring an index cat bond to market in literally one week, whereas usually that’s a six-to-eight-week process,” Bolding explained.
Adding: “Right now, if you look at the situation, you have just over $4 billion of maturities in June, and you have $1.25 billion of TWIA bonds being early redeemed. That creates a very specific market window. If you can get out and act quickly, you’re in a much better position to access that capital while it’s available and conditions are really attractive.
“If that process takes too long, there’s more execution risk, whereas if you can launch it within a week, you know there are no hurricanes in the water and you know the current market dynamics. If the process takes too long, the market can shift. So, it really benefits both sides of the trade. Sponsors can access capital more quickly, and, it gives investors product when there’s strong demand for capital deployment. It’s beneficial for both sides.”
The platform has already demonstrated this proof of concept. As Artemis previously reported, the recent $150 million Arthur Re Ltd. – Quercian Re 2026-1 issuance for first-time sponsor Oak Global highlighted the platform’s speed and efficiency.
The upsized 100% transaction provides OAK Reinsurance Syndicate 2843 with retrocession for US and Canada named storms and earthquakes, as well as US wildfire events, structured on an annual aggregate and industry loss trigger basis across a three-year term.
Given that this marked the debut transaction for the platform, Bolding shared how the ILS investor community received the new structure.
“It was a very good reception. One thing about launching a new product is that we obviously talked to investors before we went out to make sure they were comfortable, and then once we launched the transaction, we got a great reception. Investors were very comfortable with the process and they understood it. Really, I didn’t see any difference between an Arthur Re deal and a regular way 144A index bond in terms of the investors that participated, so it was a very good reaction,” the CEO noted.
“That was really demonstrated by the fact that we launched at $75 million, and at the end of the day, we doubled the size and lowered the price below our initial guidance. I think that proved how receptive investors were to it, so it was a really, really good result.”
Whilst the Arthur Re platform is in its early days, Bolding is already forecasting strong growth for the years ahead and hopes for the platform to become a big part of Gallagher’s retro offering.
“Our goal is to bring in as many sponsors as possible because this platform truly benefits both sides of the market, from sponsors to investors. We are already taking numerous calls from cedants looking to secure coverage ahead of this year’s hurricane season.
“My hope is that this becomes a big part of our retro offering, giving us a platform that allows cedants to act quickly and much more efficiently when they go to market with their cat bonds,” he concluded.
Read all of our interviews with ILS market and reinsurance sector professionals here.
