Fidelis Insurance has announced the closing of a new catastrophe bond issued through its Herbie Re Ltd. program.
Fidelis Insurance Bermuda Limited (FIBL) facilitated the issuance of the Series 2025-1 Class A Principal-at-Risk Variable Rate Notes, referred to as the Series 2025-1 Notes.
The Series 2025-1 Notes represent the seventh series of notes issued under the Herbie Re program and will provide Fidelis Insurance Group with $90 million in collateralized reinsurance protection.
The notes cover insured industry losses from a range of natural catastrophe events on an annual aggregate basis. These include North America named storms, North America earthquakes, US severe thunderstorms, US wildfires, US winter storms, US Caribbean earthquakes, Japan typhoons, Japan earthquakes, Canada severe storms, Canada winter storms, European windstorms, Italy earthquakes, Turkey earthquakes, Australia earthquakes, Australia tropical cyclones, and New Zealand earthquakes, as reported by PCS and/or PERILS.
The Series 2025-1 Notes are expected to provide approximately two years of protection for Fidelis Insurance Group, with the risk period set to end on June 7, 2027.
The notes were priced at the lower end of the initial guidance range, with a spread of 31% and an expected loss of 8.79%. This pricing structure reflects ongoing investor demand for higher-yield insurance-linked securities and indicates a willingness in the market to assume greater levels of catastrophe risk in exchange for increased returns.
Since the inception of the Herbie Re program in 2020, Fidelis has completed seven catastrophe bond issuances through the platform. The program has become a key element of Fidelis’s retrocessional risk transfer strategy, offering diversified coverage and allowing the insurer to manage exposures across multiple regions and perils.
Previous issuances under the Herbie Re program, including the Series 2021-1 bond, have been tested by significant loss events such as the 2024 hurricane season and the California wildfires in early 2025. These prior events triggered reinsurance recoveries, reinforcing the importance of catastrophe bonds in Fidelis's overall risk management strategy.
Ian Houston (pictured above), chief underwriting officer of Fidelis Insurance Group, said the issuance continues to build on the current Herbie Re catastrophe bond program.
“These bonds are a vital part of our extensive capital management and external protection strategy, offering significant capital efficiency and safeguarding against severe events. This issuance enhances our overall reinsurance strategy, which encompasses quota share agreements, excess of loss treaties, and industry loss warranties,” Houston said.
Richard Coulson, deputy group chief underwriting officer at The Fidelis Partnership, said the team worked closely with Houston and Fidelis Insurance Group to bring the latest series of the Herbie Re catastrophe bond program to market.
“This new tranche of coverage builds on the strength of the existing program supporting The Fidelis Partnership as it continues to capitalize on opportunities across catastrophe-exposed lines of business in 2025 and beyond,” Coulson said.
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