Fidelis Insurance Holdings Sponsors New ‘Herbie Re’ Catastrophe Bond

Fidelis Insurance Holdings Ltd., the Bermuda insurance holding company, announced it has closed a new catastrophe bond via its “Herbie Re” program.

This is the fifth series of notes issued by Herbie Re and will provide Fidelis Insurance Holdings (also known as Fidelis Insurance Group) with $150 million of collateralized reinsurance protection.

The Series 2024-1 notes issued will be exposed to insured industry losses resulting from named storm and earthquake covered events occurring in the fifty states of the United States and the District of Columbia, Puerto Rico and the U.S. Virgin Islands, as reported by PCS, on an annual aggregate basis.

Fidelis has the option to renew the Series 2024-1 notes on an annual basis, up to a maximum of four complete annual risk periods.

“These bonds remain a critical component of our comprehensive capital management and outwards protection strategy, providing important capital relief and downside protection,” commented Ian Houston, Fidelis Insurance Group’s chief underwriting officer. “They complement our other purchases such as quota share, excess of loss and ILWs to support the work of Fidelis MGU.”

In January 2023, Bermuda-based Fidelis Insurance Holdings Ltd. (FIHL), created a new managing general underwriter (Fidelis MGU), which was separated from FIHL and the existing insurance companies (the Fidelis Insurance Group). In June 2023, FIHL completed an initial public offering.

Richard Coulson, deputy group chief underwriting officer at Fidelis MGU, commented :”We have worked in close alignment with the Fidelis Insurance Group to bring this series to market which builds on their current Herbie Re Catastrophe Bond program. 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”.

The catastrophe bond was priced on Feb. 15, 2024, and closed on Feb. 22, 2024. Aon acted as sole structuring agent and sole bookrunner for the deal. Willkie Farr & Gallagher (UK) LLP advised as counsel for Fidelis Insurance Group and Herbie Re.

Fidelis’ businesses focus on three pillars: specialty, bespoke, and reinsurance. In addition to Bermuda, the company also has operations in Ireland and the United Kingdom

Source: Fidelis Insurance Holdings