Bermudian reinsurer Ariel Re is sponsoring its first 144A index-triggered catastrophe bond, which is being issued by Bermuda special purpose insurer Titania Re.
Titania Re will provide $150 million of multi-year collateralised reinsurance protection to Ariel Re structured using an indexed industry loss trigger.
The company’s inaugural cat bond provides it with protection against North American named storms and earthquakes.
Ryan Mather, Chief Executive Officer of Ariel Re, commented: “We’re very pleased to announce the success of Ariel Re’s entrance into the cat bond market. 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 this partnership with valued ILS investors will benefit those investors, Ariel Re’s clients and our owners.”
Matthew Twilley, Head of Ceded at Ariel Re, added: “The strong demand from investors enabled us to execute the transaction with confidence; we are encouraged by this support for Ariel Re and aim to build on our relationships with ILS investors.”
The cat bond successfully closed on Wednesday with TigerRisk Capital Markets & Advisory acting as Sole Structuring Agent and Joint Bookrunner, with Aon Securities LLC acting as Joint Bookrunner.