Ariel Re has completed the issuance of its fifth catastrophe bond, Titania Re 2025-1, securing US$150 million in retrocessional reinsurance coverage. The bond provides multi-peril protection over a four-year term, using a state-weighted industry loss trigger.
The bond was initially marketed with a target of US$125 million but was upsized to US$150 million following strong investor demand. Market participants showed interest across both tranches of the deal.
The protection includes coverage for named storms and earthquakes across the US, Puerto Rico, the US Virgin Islands, and Canada—consistent with the scope of previous cat bonds issued by the company. For the first time, this bond also incorporates coverage for US wildfires.
This expansion marks Ariel Re’s first inclusion of wildfire risk in its catastrophe bond program. The US wildfire component extends across the country and represents a response to growing exposure from wildfire events in key regions such as California.
The coverage is expected to function similarly to other perils in the structure, offering protection on an indemnity basis through the state-weighted industry loss trigger.
Titania Re 2025-1 also marks Ariel Re’s first four-year catastrophe bond. Syndicate 1910 at Lloyd’s of London serves as the ceding entity. The deal closed on July 1, with Ariel Re issuing two tranches of Series 2025-1 notes to investors.
The US$150 million in notes were divided equally between two tranches. The Class A notes were priced at a spread of 6.25% with an expected loss of 2.25%, while the Class B notes were priced at 16.25% with an expected loss of 6.35%.
Ryan Mather (pictured above right), CEO of Ariel Re, said the company successfully completed the transaction and noted the level of investor participation.
“Capital markets investors are an important part of Ariel Re’s strategy, and we are very happy with the stability we have secured through this four-year bond,” Mather said.
Earlier this year, the reinsurer also announced the successful completion of the first fundraising round for its third-party capital platform, Ariel Re Capital Partners (ARCP).
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