Following the recent closure of the $75 million Arthur Re Ltd. – Tranquil Re 2026-1 catastrophe bond from ILS manager Leadenhall Capital Partners LLP for rated reinsurance platform Nectaris Re, executives from Gallagher Securities, who acted as Sole Structuring Agent and Bookrunner for the transaction, highlighted how the issuance received strong investor demand across the market, driving a solid upsizing.
The cat bond will provide Nectaris Re Ltd. with a multi-year source of fully-collateralized multi-peril US peak peril retrocessional reinsurance from the capital markets, covering U.S. named storms and earthquakes events over a roughly two-year term to the end of June 2028.
At the same time, this also marked the third catastrophe bond to come to market and be issued using the Arthur Re Ltd. platform, which is Gallagher Re’s structure that has been designed to make issuing index trigger cat bonds more cost effective and efficient.
“Strong investor demand drove an upsizing from $60 million to $75 million, enabling final pricing at 12.00% and achieving a 1.67x risk-return multiple. This outcome highlights robust support from a diversified global ILS investor base,” Gallagher Securities explained.
“Tranquil Re 2026-1 showcases Arthur Re’s ability to deliver faster, more efficient index catastrophe bond issuance, enhancing how we connect clients with capital markets,” commented Jason Bolding, Global CEO, Gallagher Securities.
“This third transaction highlights how Gallagher Re is product-agnostic, integrating innovative retrocession solutions such as Arthur Re and accessing the most suitable and cost-efficient capital for our clients,” said Paddy Ellis, Global Head of Retrocession, Gallagher Re.
“We thank you Gallagher Re for a well managed and efficient process and the successful outcome,” added Luca Albertini, Founding partner and CEO at Leadenhall Capital Partners LLP.
As a reminder, you can read all about this new Arthur Re Ltd. – Tranquil Re 2026-1 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.
Also read: Arthur Re adds another dimension to Gallagher Securities’ global retro offering: CEO Bolding
