The Fidelis Partnership’s Syndicate 3123 has secured its first catastrophe bond protection through a US$75 million Woody Re 2026-1 issuance. The transaction was executed through a segregated account of Arthur Re Ltd, a Gallagher Re platform. Asta Managing Agency acted as managing agent of the syndicate.
The deal gives the syndicate “another efficient tool to manage risk alongside our traditional reinsurance partnerships,” said David Woods, head of portfolio and exposure and Ireland chief executive officer at The Fidelis Partnership.
He added that it supports a diversified protection programme as the syndicate continues to grow.
The notes provide Syndicate 3123 with reinsurance protection against losses from named storms, earthquakes, severe thunderstorms, winter storms, and wildfire events across North America. The cover runs for a three-year term ending 30 June 2029.
Syndicate 3123 launched in 2024 and underwrote approximately US$200 million of gross written premium in its first six months. It has since grown to an approved gross written premium of more than US$1 billion for 2026.
The cat bond falls within a broader shift toward capital markets capacity across the reinsurance sector. Guy Carpenter’s July 2026 renewals report found that catastrophe bond issuance remained strong at mid-year, with more than US$61 billion in limit outstanding. That level is close to the record set in the first half of 2025.
Property catastrophe reinsurance rates continued to soften over the same period. That environment has pushed more cedants to pair traditional cover with instruments such as cat bonds to diversify protection.
The transaction extends a wider pattern of capital markets use across The Fidelis Partnership’s Lloyd’s platforms. Syndicate 3123 reached US$0.8 billion in written premium in 2025, up from US$0.2 billion in 2024, following a mid-year capital raise.
The group also launched Syndicate 2126 in 2026, with dedicated three-year capacity deployed through the London Bridge 2 platform and backed by funds managed by Blackstone.
Combined, the two syndicates were guided toward approximately US$1.3 billion of Lloyd’s premium for 2026 as of April 2026. That trajectory shows how quickly The Fidelis Partnership has scaled its use of alternative and third-party capital at Lloyd’s.
The first cat bond for Syndicate 3123 comes as more Lloyd’s syndicates look beyond traditional panels to manage catastrophe exposure. Capital markets capacity now complements its quota share and excess-of-loss arrangements. That combination points to a broader shift toward blended risk transfer as the syndicate’s underwriting book continues to expand.
