Ariel Re Successfully Re-enters the Catastrophe Bond Market

Business Wire

HAMILTON, Bermuda--(BUSINESS WIRE)--
Ariel Re has announced it has sponsored a 144A index-triggered catastrophe bond (“cat bond”) issued by Bermuda special purpose insurer Titania Re Ltd. (“Titania Re”). Titania Re will provide USD 175 million 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 successful placement of their first cat bond Titania Re Ltd. (Series 2021-1) earlier this year.

Ryan Mather, Chief Executive Officer of Ariel Re, commented: “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.”

The cat bond successfully closed on 21st December, 2021. TigerRisk Capital Markets & Advisory acted as Sole Structuring Agent and Joint Bookrunner, with Aon Securities LLC acting as Joint Bookrunner.

About Ariel Re

Ariel Re transacts a broad array of reinsurance business through offices in Bermuda, London, and Hong Kong. We are a multi-line reinsurer meeting the business needs of a diverse client base. Ariel Re operates principally through Syndicate 1910 at Lloyd’s but also offers access to Lloyd’s Brussels (“LBS”) via LBS Syndicate 5336.

Originally founded in 2005, Ariel Re was acquired by Pelican Ventures and J.C. Flowers on November 24, 2020. The new owners bring to the table significant capital resources and a long track record of supporting successful, entrepreneurial businesses in the (re)insurance industry.