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London headquartered insurer Beazley has sponsored its second 144A cyber catastrophe bond, securing an additional $160 million of capital markets-backed cyber reinsurance coverage via a PoleStar Re Ltd. (Series 2024-2) issuance, as reported by Artemis, our insurance-linked securities (ILS) focused sister publication.
Artemis has learned from sources that this $160 million cyber cat bond transaction is viewed as an extension of PoleStar Re 2024-1, Beazley’s debut 144A cyber cat bond that was issued in December 2023, and takes Beazley’s cyber cat bond coverage to $300 million.
Sources have told Artemis that the structure of the new deal is the same as the 2023 issuance, and could be a way to fill the $300 million layer that the first PoleStar Re transaction partially filled, although this has not been confirmed.
What is clear is that the new deal has a longer duration than its predecessor, which provides cyber reinsurance coverage to the end of calendar year 2025, as the new, $160 million deal provides the insurer with a source of cyber protection through to the end of 2026.
According to Artemis, strong investor demand for the inaugural issuance attracted Beazley to extend its PoleStar Re cyber cat bond coverage, which is evidenced by the larger size of this second deal.
While it’s not been confirmed, it’s assumed that PoleStar Re Ltd. (Series 2024-2) will provide the specialty insurer with $160 million of cyber reinsurance coverage from the capital markets, protecting the firm against major cyber loss events that impact its underwriting entities, including its Lloyd’s syndicates and also its U.S. insurers.
Sources also told Artemis that these notes are again structured on an indemnity trigger and per-occurrence basis, with Gallagher Securities again acting as the sole structuring agent and bookrunner.
This latest deal from Beazley increases the total amount of 144A cyber cat bonds in the market to $588.75 million, with $300 million, or 51% of this coming from Beazley’s two deals.
The Artemis Deal Directory lists the almost $590 million of cyber cat bonds, and can be filtered by peril to show only cyber deals.
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