By Michael Loney

June 2 - (The Insurer) - Fidelis Insurance Holdings Limited has closed a new catastrophe bond through the issuance of the Series 2025-1 notes by its Herbie Re Ltd program.

The transaction is the seventh series of notes issued by Herbie Re and will provide Fidelis Insurance Group with $90 million of collateralised reinsurance protection.

The Series 2025-1 notes issued will be exposed to insured industry losses resulting from North America named storm, North America earthquake, U.S. severe thunderstorm, U.S. wildfire, U.S.winter storms, U.S. Caribbean earthquake, Japan typhoon, Japan earthquake, Canada severe storm, Canada winter storm, European windstorm, Italy earthquake, Turkey earthquake, Australia earthquake, Australia tropical cyclone, and New Zealand earthquake, as reported by PCS and/or Perils on an annual aggregate basis.

The Series 2025-1 notes are expected to provide Fidelis Insurance Group with approximately two years of protection, with the risk period scheduled to end on June 7, 2027.

Fidelis Insurance Group chief underwriting officer Ian Houston said the Herbie Re catastrophe bonds “are a vital part of our extensive capital management and external protection strategy, offering significant capital efficiency and safeguarding against severe events”.

He added that the cat bonds enhance the group’s overall reinsurance strategy, which encompasses quota share agreements, excess of loss treaties and industry loss warranties.

Richard Coulson, deputy group chief underwriting officer at The Fidelis Partnership, said the new tranche of coverage “builds on the strength of the existing program supporting The Fidelis Partnership as it continues to capitalize on opportunities across catastrophe-exposed lines of business in 2025 and beyond”.

Aon Securities acted as sole structuring agent and sole bookrunner for the deal. Willkie Farr & Gallagher advised as counsel for Fidelis Insurance Group and Herbie Re.

This latest deal follows Fidelis Insurance Group in December last year securing $375 million of coverage though the 2024-2 Herbie Re cat bond to protect against losses from named storm and earthquake events across the U.S., Puerto Rico and U.S. Virgin Islands.