Fidelis Insurance Holdings Limited has successfully placed a new catastrophe bond to bolster its reinsurance protections against major seismic events.
The global specialty insurer announced today that its subsidiary, Fidelis Insurance Bermuda Limited, closed the transaction through the issuance of Series 2026-1 Class A Principal-at-Risk Variable Rate Notes.
This marks the eighth series of notes issued under the Herbie Re Ltd. program, continuing a long-standing strategy of leveraging the capital markets for risk transfer.
The $75 million issuance will provide Fidelis Insurance Group with annual aggregate, industry-loss triggered protection against losses from earthquakes affecting the United States and the District of Columbia. This source of collateralized retrocessional reinsurance protection will cover the company over an almost four-year term, scheduled to run through the end of 2029.
The successful placement of this bond demonstrates the continued appetite among institutional investors for high-quality insurance-linked securities (ILS). It also highlights Fidelis's disciplined approach to risk selection and capital allocation in an evolving reinsurance landscape.
The move follows a busy year for the specialty insurer, which was recently highlighted when Fidelis achieved a record combined ratio and grew premiums in its Q3 2025 results.
Ian Houston (pictured), chief underwriting officer at Fidelis Insurance Group, noted that the issuance builds on the sustained success of the Herbie Re program. “Building on the success of our Herbie Re Catastrophe Bond program, we are pleased to announce the latest issuance for Fidelis Insurance Group,” Houston said.
“Catastrophe bonds remain a crucial element of our comprehensive capital management and external protection framework, delivering substantial capital efficiency and robust protection against severe events.”
He added that this new issuance extends coverage across the company's entire portfolio, including business written through The Fidelis Partnership and other new underwriting partnerships.
This expansion is part of the group's broader strategy to capitalize on favorable risk-reward opportunities, a vision that was also advanced when The Fidelis Partnership launched a consortium to insure AI data center construction.
The new bond further strengthens Fidelis’s holistic reinsurance strategy, which already utilizes a mix of quota share agreements, excess of loss treaties, and industry loss warranties (ILWs).
By diversifying its sources of capital protection, the group ensures that its balance sheet remains resilient against severe and unpredictable catastrophe losses.
The Series 2026-1 catastrophe bond was officially priced on January 16, 2026, and successfully closed on January 22, 2026. Aon Securities LLC played a pivotal role in bringing the deal to market, acting as the Sole Structuring Agent and Sole Bookrunner for the transaction. Legal counsel for Fidelis Insurance Group and Herbie Re was provided by Willkie Farr & Gallagher (UK) LLP.
