Ariel Re, a multi-line reinsurer which operates principally through Syndicate 1910 at Lloyd’s, has sponsored a catastrophe bond issued by a Bermudian special purpose insurer Titania Re Ltd. (Series 2021-2).
The latest cat bond from Ariel Re provides the company with $175 million of multi-year collateralised reinsurance protection against North American named storms and earthquakes.
Structured using an industry loss index trigger, the cat bond sees Ariel Re secure capital markets backed retrocession for its Lloyd’s Syndicate 1910 operation.
This is the company’s second entry into the cat bond market after its successful $150 million Titania Re Ltd. (Series 2021-1) issuance in June of this year.
The recent transaction closed on December 21st, 2021. TigerRisk Capital Markets & Advisory acted as sole structuring agent and joint bookrunner, with Aon Securities also acting as joint bookrunner.
Ryan Mather, Chief Executive Officer (CEO) of Ariel Re, commented: “We’re very pleased to announce the success of Ariel Re’s second cat bond sponsorship. 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 our return to the cat bond market shows our commitment to delivering value to all parties.”
Daniel Pell, Ceded Underwriter at Ariel Re, added: “The strong demand from investors allowed us to upsize our second cat bond from $150 million to $175 million and execute the transaction with confidence; we are encouraged by the continued support for Ariel Re and aim to further build on our relationships with ILS investors.”
