Specialist insurer Beazley, has closed its first 144A cyber catastrophe bond providing cover of $140 million.
This marks Beazley’s first inaugural 144A bond and builds on its $81.5 million cyber catastrophe bond programme of 2023.
The PoleStar Re Ltd. Series 2024-1 Class A cyber catastrophe bond notes cover Beazley for remote probability catastrophic and systemic events, by using an indemnity trigger on a per-occurrence basis, as well as running for a two-year term through to the end of 2025.
You can read about the deal along with hundreds of other catastrophe bonds, which are listed in the Artemis Deal Directory.
Another important factor to note, is that this is just the second full 144a cyber cat bond ever, after AXIS Capital’s $75 million Long Walk Reinsurance Ltd. (Series 2023-1) transaction.
Moreover, it has also been confirmed, that Gallagher Securities was the sole structuring and book building agent.
At the same time, risk modelling was provided by Moody’s RMS, along with a second view of risk by CyberCube.
Mayer Brown served as the deal counsel on the transaction.
Paul Bantick, Global Head of Cyber Risks, Beazley, commented: “The cyber market is predicted to treble in size over the next four years. To get there we must keep evolving as a market to ensure we can provide cover for catastrophic events as demand and risk grows. Catastrophe bonds and the ILS market are vital to this.
“Investor interest in our issuance has been strong and their support is testament to the confidence they have in our ability to effectively manage cyber risk. Building on the success of the market’s first cyber catastrophe bond programme in 2023, we expect to continue scaling our presence in the cyber insurance linked securities market, encouraging others to do the same.”
