Specialty insurer and reinsurer, Beazley, has sponsored its second cyber catastrophe bond, adding $20 million of additional reinsurance protection via the issuance of Cairney II, as reported by our insurance-linked securities (ILS) focused sister publication, Artemis.
In January, Beazley became the first to sponsor a cyber catastrophe bond when it placed a $45 million private section 4(2) cyber cat bond.
The inaugural transaction provided the London-based re/insurer with broad cyber reinsurance coverage for remote probability catastrophic and systemic events, including tech errors & omissions (E&O) risks for a roughly one-year term.
Beazley said at the time that it expected the deal to be the first of many.
Yesterday, Artemis learnt that Beazley has leveraged a second segregated cell to add $20 million of new reinsurance protection through the issuance of Cairney II, using the same Artex Risk Solutions owned and operated segregated account reinsurance transformer platform, named Artex SAC Limited, as it did for the first deal.
So, it appears as though the $20 million Cairney II cyber cat notes are an extension of the first Beazley deal.
According to Artemis, the reinsurance coverage is for the same type of cyber risks and the notes will run to the same maturity of the first issuance – the end of this year.
Together, the Cairney cyber cat bonds now provide Beazley with $65 million of cyber reinsurance, with the notes having a due date of January 8th 2024.