Gallagher Re, a reinsurance dealer, anticipates a surge in investments in cyber disaster bonds in 2024, following the profitable launch of PoleStar Re Ltd. (Series 2024-1) in December 2023.
This bond proved extremely profitable, with Beazley securing $140 million of cyber reinsurance from the capital markets.
Earlier within the 12 months, Gallagher Re’s cyber group had pioneered the cyber disaster bond market in collaboration with Beazley, offering over $80 million in cyber reinsurance safety via three non-public cyber cat bonds (Cairney I, II, and III).
Therefore, the debut of this 144A cyber disaster bond successfully changed the safety supplied by the Cairney collection.
Tom Wakefield, CEO of Gallagher Re, expresses confidence in continued funding in cyber disaster bonds, stating, “Our continued support of Beazley’s cyber capital expansion through PoleStar Re will further accelerate capital market investment in cyber more broadly.”
Wakefield provides, “We have now taken the next step into 144A bonds – but the journey does not end here. We remain dedicated to developing further Cyber ILS products for the capital benefit of our clients.”
As highlighted in Artemis, our insurance-linked securities (ILS) targeted sister publication, the surge in funding in cyber disaster bonds could also be influenced by Beazley’s important function as a serious author of cyber re/insurance coverage. As the demand for cover in opposition to cyber dangers grows, Beazley stands poised to change into a big issuer of cyber cat bonds.
Given the success of PoleStar Re, Gallagher Re’s ongoing dedication to innovation, Beazley’s outstanding position within the trade, and the rising market demand for cyber threat safety, the corporate is well-positioned to satisfy the expectations for extra cyber disaster bonds this 12 months.
To be taught extra about PoleStar Re, the Cairney collection, and different disaster bonds, go to our Deal Directory on our ILS-focused sister publication, Artemis.
