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Fidelis secures $375 mn Cat Bond for named storm & earthquake risks

Fidelis secures $375 mn Cat Bond for named storm & earthquake risks

Fidelis Insurance Holdings’ Bermuda-based affiliate has finalized a $375 mn catastrophe bond to cover named storms and earthquakes in the U.S.

Issued under the Herbie Re program, this marks the sixth series of notes from Fidelis Insurance Bermuda. The cat bond provides $375 mn in collateralized reinsurance coverage.

The bond covers insured industry losses from named storms and earthquakes across the 50 U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Losses will be reported on an annual aggregate basis by PCS, a claims reporting service.

The bond is divided into three classes:

  • Class A and Class B notes offer approximately four years of protection, ending Dec. 31, 2028.
  • Class C notes provide around two years of coverage, ending Dec. 31, 2026.

Fidelis priced the bond on Dec. 17 and closed it on Dec. 27. Aon served as the sole structuring agent and bookrunner for the transaction.

Ian Houston, Chief Underwriting Officer at Fidelis Insurance Group, highlighted the importance of cat bonds in their risk strategy.

These bonds are essential to our capital management and risk mitigation efforts. They strengthen our reinsurance strategy, which also includes quota share, excess of loss, and industry loss warranties.

Ian Houston, Chief Underwriting Officer at Fidelis

Richard Coulson, Deputy Group Chief Underwriting Officer at Fidelis Partnership, emphasized the partnership’s ongoing commitment to catastrophe-exposed lines.

“The latest Herbie Re tranche reflects our continued focus on seizing opportunities in these lines. Working with the Fidelis team, we’ve successfully brought this series to market to support our strategic goals for 2025 and beyond.”