A second catastrophe bond is coming to market via Gallagher Re’s new Arthur Re Ltd. platform, with a $75 million target for industry-loss triggered multi-peril reinsurance to benefit the Fidelis Partnership linked Syndicate 3123 at Lloyd’s, through this Arthur Re Ltd. – Woody Re 2026-1 issuance, Artemis can report.
It’s only the second cat bond offering to come via Arthur Re Ltd., a Bermuda domiciled unrestricted special purpose insurer (SPI) owned by Gallagher Re and managed by Artex that was established last year as a multi-cedant platform for efficient issuance of index trigger cat bond deals, following soon after the recent Oak Global Quercian Re 2026-1 cat bond was successfully issued.
For its second cat bond issuance that we’ve seen, Arthur Re Ltd. is offering an initially $75 million tranche of Class A notes on behalf of its segregated account named Woody Re 2026-1, we understand.
These notes are designed to provide a source of fully-collateralized, multi-year and multi-peril retrocessional reinsurance from the capital markets, to protect Syndicate 3123, which is acting through its managing agent Asta Managing Agency.
The cat bond notes will provide the Fidelis Partnership linked Syndicate 3123 at Lloyd’s with a source of catastrophe reinsurance against losses from named storms, earthquakes, severe thunderstorms, winter storms and wildfire events, over a three year term to the end of June 2029, we are told.
The covered area differs across the perils, with all of them covering the 50 states of the US and DC, but named storms cover also being for Puerto Rico and the US Virgin Islands, the same for earthquake but including Canada as well, while severe thunderstorms, wildfires and winter storms are just covered across the US and DC.
The reinsurance protection from the Woody Re 2026-1 Class A catastrophe bond notes will cover Syndicate 3123 on an annual aggregate, industry loss index trigger basis, with franchise deductibles of $15 billion to be enforced for named storm and earthquake events, and $10 billion for the other covered perils.
The Woody re 2026-1 Class A notes have an initial attachment at $78 billion of aggregated industry losses and exhaustion is at $148 billion, which gives them an initial attachment probability of 7.13% and initial expected loss of 3.88%, sources said.
The currently $75 million of cat bond notes are being offered with price guidance for an initial risk interest spread of between 8.25% and 9%, we understand.
It’s good to see a second issuance coming so quickly from the Arthur Re Ltd. platform and for the cedant to be a new entity to the catastrophe bond market, in the Fidelis Partnership linked Syndicate 3123.
You can read all about this new Arthur Re Ltd. – Woody Re 2026-1 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.
