Fidelis Insurance has successfully completed the issuance of new catastrophe bonds through its Herbie Re program, marking the fifth series by Herbie Re.
The issuance encompasses the Series 2024-1 Class A and Class B Principal at Risk Variable Rate Notes, raising $150 million in collateralized reinsurance protection for the company.
The Series 2024-1 Notes are designed to provide Fidelis with coverage against industry losses stemming from named storms and earthquakes. The coverage area includes all 50 states of the United States, the District of Columbia, Puerto Rico, and the US Virgin Islands, with loss assessments being conducted by PCS on an annual aggregate basis.
Fidelis also maintains the option to renew the coverage provided by the Series 2024-1 Notes annually for up to four years.
Ian Houston, chief underwriting officer for Fidelis Insurance Group, emphasized the importance of the latest catastrophe bond issuance within the company’s broader capital management and risk mitigation strategy.
“Fidelis Insurance Group is excited to have in place the latest issuance under the Herbie Re Catastrophe Bond program,” Houston said. “They complement our other purchases such as quota share, excess of loss and ILWs to support the work of Fidelis MGU.”
Richard Coulson, deputy group chief underwriting officer at Fidelis MGU, also commented on the collaborative efforts to bring this latest series of catastrophe bonds to the market.
“This tranche of cover is the latest tool employed by Fidelis Insurance Group to enable us to capitalize on opportunities across catastrophe exposed lines of business in 2024 and beyond,” Coulson said.
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