Business

Ariel Re re-enters catastrophe bond market

Titania Re will provide $175m (£131m) of multi-year collateralised reinsurance cover to Ariel Re using an indexed industry loss trigger under the Series 2021-2 Notes, protecting against North American named storms and earthquakes

Ariel Re has announced it has sponsored a 144A index-triggered catastrophe bond issued by Bermuda special purpose insurer Titania Re.

Titania Re will provide $175m (£131m) of multi-year collateralised reinsurance cover to Ariel Re using an indexed industry loss trigger under the Series 2021-2 Notes, protecting against North American named storms and earthquakes.

This is Ariel Re’s second foray into the cat bond market after a placement of their first cat bond Titania Re (Series 2021-1) earlier this year.

The cat bond successfully closed on 21 December, 2021. TigerRisk Capital Markets and Advisory acted as sole structuring agent and joint bookrunner, with Aon Securities LLC also acting as joint bookrunner.

Ryan Mather, chief executive officer of Ariel Re, said: “We’re very pleased to announce the success of Ariel Re’s second cat bond sponsorship. This transaction supports Ariel Re in our mission to be the premier manager of reinsurance risk. Titania Re is an important part of our strategy and our return to the cat bond market shows our commitment to delivering value to all parties.”

Daniel Pell, ceded underwriter at Ariel Re, added: “The strong demand from investors allowed us to upsize our second cat bond from $150 million to $175 million and execute the transaction with confidence; we are encouraged by the continued support for Ariel Re and aim to further build on our relationships with ILS investors.”

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