Fidelis Secures $75M Catastrophe Bond for U.S. Earthquake Protection

Event summary

  • Fidelis Insurance Bermuda Limited issued $75M in Series 2026-1 Notes through Herbie Re Ltd. for earthquake protection.
  • The bond provides annual aggregate, industry-loss triggered coverage for U.S. and D.C. earthquakes through 2029.
  • This is the eighth issuance in the Herbie Re program, priced on January 16, 2026, and closed on January 22, 2026.
  • Aon Securities LLC acted as Sole Structuring Agent and Sole Bookrunner for the deal.

The big picture

Fidelis' latest catastrophe bond issuance underscores the growing reliance on capital markets for reinsurance protection. The $75M deal extends coverage across Fidelis' portfolio, including partnerships, highlighting the strategic importance of catastrophe bonds in managing aggregate risk. This move aligns with industry trends where insurers increasingly turn to alternative risk transfer mechanisms to enhance financial resilience.

What we're watching

Capital Efficiency
How Fidelis will leverage this bond to optimize its capital management framework.
Market Dynamics
Whether the $75M issuance reflects broader trends in catastrophe bond market demand.
Risk Exposure
The pace at which Fidelis expands its catastrophe bond portfolio to cover other perils.

Related topics

Insurance