Beazley, the London headquartered insurance and reinsurance company, has sponsored a $45 million Section 4(2) private catastrophe bond that provides the company with capital market investor-backed cyber reinsurance protection.
While this first cyber cat bond is a private Section 4(2) cat bond, it is fully tradeable under Rule 144A.
The $45 million private Section 4(2) catastrophe provides Beazley with indemnity reinsurance protection against all perils in excess of a $300 million cyber catastrophe event, the attachment point for the cyber cat bond notes.
As a result, it appears to be an indemnity cat bond, that will provide Beazley with reinsurance protection on a per-occurrence basis.
The company said that the structure gives the potential for additional tranches to be released through 2023 and beyond.
The cyber cat bond has been backed by a panel of ILS investors including Fermat Capital Management, LLC, Beazley explained, while it was structured and placed by Gallagher Securities, the ILS arm of Gallagher Re.
Beazley said that the cyber cat bond will provide it with reinsurance cover for remote probability catastrophic and systemic events.
