Beazley tops-up cyber cat bond cover with second $20m issuance
According to sources, Beazley, a London-based specialty insurance and reinsurance provider, has successfully sponsored its second cyber catastrophe bond. As a result, the company topped up its initial Cyber-Cat bond offering with a second separate cell to add $20 million in new reinsurance protection via a Cairney II issue.
The London-based re/insurer announced the successful placement of a $45 million Section 4(2) private cyber catastrophe bond in January, making it the first cyber catastrophe bond issuer.
The first transaction offered the London-based re/insurer complete cyber reinsurance coverage for catastrophic and systemic low-probability events, including technical errors and omissions (E&O), for a one-year term. The re/insurer stated at the time that this was the first of many deals.
Artemis learned yesterday that Beazley added $20 million in new reinsurance protection through the issuance of Cairney II, using the same Artex Risk Solutions-owned and operated segregated account reinsurance transformer platform named Artex SAC Limited that was used for the first deal.
So it appears that Cairney II’s $20 million Cyber-Cat Notes are a continuation of the previous Beazley transaction.
According to Artemis, the reinsurance protection applies to the same types of cyber risks as the first issuance at the end of this year, and the notes have the same maturity as the first issuance at the end of this year.
The Cairney cyber cat bonds now provide Beazley $65 million in cyber reinsurance, with the bonds due on January 8, 2024.