Beazley, the London headquartered specialty insurance coverage and reinsurance underwriter, has now added a 3rd privately positioned cyber disaster bond, taking its cyber cat bond protection to $81.5 million after securing an extra $16.5 million in cyber reinsurance from the capital markets via a Cairney III issuance.
Simply earlier this month Adrian Cox, the CEO of Beazley, stated he anticipates the corporate tapping the capital markets for extra cyber reinsurance capability in 2024 via further cyber disaster bonds.
Now, Artemis has discovered that plans have been already in place to top-up the 2023 cyber cat bond issuances somewhat extra, with this third $16.5 million Cairney III transaction.
Beazley turned the primary firm to sponsor a cyber cat bond again in January 2023, when a $45 million non-public Part 4(2) cyber disaster bond was positioned with buyers.
That first Beazley cyber cat bond sourced the re/insurer with broad cyber reinsurance cowl for distant likelihood catastrophic and systemic occasions, together with tech errors & omissions (E&O) dangers, throughout a roughly one-year time period.
Beazley then adopted that up with a second cyber cat bond issuance, utilizing the identical non-public cat bond format.
That second Cairney II cyber cat bond issuance got here to market in Might and noticed Beazley utilizing a second segregated cell so as to add $20 million of contemporary cyber reinsurance cowl from the capital markets.
The Beazley cyber cat bonds are privately positioned Part 4(2) issuances, utilizing as their particular function insurer (SPI) the Artex Danger Options owned and operated segregated account reinsurance transformer platform, named Artex SAC Restricted, performing on behalf of a segregated account, or cell.
Now, a 3rd has come to mild, with Beazley sponsoring one other $16.5 million Part 4(2) cyber cat bond issuance, utilizing a segregated account named Cairney III, of the identical Artex SAC automobile.
We’re advised the reinsurance protection is for a similar sort of cyber dangers as the opposite Cairney offers and that the notes will run to the identical maturity date.
So as soon as once more, this seems an extension of the cyber disaster bond protection from the primary two Cairney offers, because the maturity date is similar, being January eighth 2024.
It signifies that Beazley now has $81.5 million of cyber reinsurance in cyber cat bond kind, working to the top of 2023, with last maturity on Jan eighth 2024.
Like the primary two Beazley cyber cat bonds, we presume that Gallagher Securities acted as the only structuring agent & bookrunner, whereas CyberCube supplied the chance modelling.
These Beazley sponsored Cairney cyber cat bonds characterize remodeled collateralised reinsurance offers, which were syndicated throughout a bunch of buyers and securitized utilizing a segregated cell of a particular function insurance coverage automobile.
As we’ve defined earlier than, we perceive that related cyber reinsurance preparations have been transacted in conventional kind first, then in a collateralised reinsurance kinds, earlier than Cairney cyber cat bond offers have been sponsored.
You’ll be able to learn all about this Beazley cyber cat bond (Cairney III) in our in depth disaster bond Deal Listing.