Beazley’s fourth successful sponsorship of a 144A cyber catastrophe bond, the $300 million PoleStar Re Ltd. (Series 2026-1) issuance, which became the largest cyber cat bond to be issued so far, demonstrates evidence of the company’s ability to drive sustained growth within the cyber insurance-linked securities (ILS) space, CUO Paul Bantick said today.
This latest issuance builds on Beazley’s series of cyber catastrophe bonds, following its sponsorship of the market’s first ever cyber catastrophe bond in January 2023.
Beazley then sponsored its first 144A cyber cat bond in December 2023, with the $140 million PoleStar Re 2024-1 deal.
The company then followed up with a $160 million PoleStar Re Ltd. (Series 2024-2) issuance in May 2024 and then just a few months later, secured a $210 million PoleStar Re Ltd. (Series 2024-3) in September 2024.
Beazley’s return to the 144A catastrophe bond market in November this year was a successful one for the company, as the PoleStar Re Ltd. (Series 2026-1) issuance managed to upsize while all three tranches of notes priced below the mid-point of their initial price guidance.
“Today, Beazley has $670 million in cyber catastrophe bonds and more than $1 billion of cyber excess of loss cover – the market’s largest and most comprehensive programme,” Beazley explained.
PoleStar Re Ltd. (Series 2026-1), which was issued via a Bermuda domiciled Special Purpose Vehicle, provides cover for remote probability catastrophic and systemic cyber events.
In a first for the cyber cat bond market, the structure also includes three sub-layers which run for a three-year term through to the end of 2028.
Gallagher Securities, the ILS and capital markets broker-dealer division of reinsurance broker Gallagher Re, was the sole structuring agent for the transaction, as well as a joint bookrunner alongside broker Aon.
Risk modelling for the issuance was provided by Moody’s RMS and a second view of risk by CyberCube, a specialist modelling firm for cyber risks and exposures. While Mayer Brown served as the deal counsel on the transaction.
The Polestar Re 2026-1 cyber cat bond builds on Beazley’s previous announcement, in November this year, that in 2026 the company will look to move beyond cyber catastrophe bond issuance, into securitisation and transformation of cyber risks.
As we’ve previously reported, Beazley has deployed $500 million of capital to establish and launch a new Bermuda platform. The new Bermuda branch that Beazley is launching will also have a cyber insurance-linked securities focus, which includes plans to launch a cyber ILS fund strategy.
Paul Bantick, Chief Underwriting Officer, Beazley, said: “Investor interest in our cyber catastrophe bond issuance continues to be strong and this latest bond is evidence of our ability to drive sustained growth in the cyber ILS market.
“We will be leveraging our new office in Bermuda in 2026, to go a step further and become a leader in investment, transformation and securitsation of cyber risks across the wider market. It’s an exciting time in the cyber ILS world and I am delighted that Beazley continues to pioneer and lead.”
It’s worth also highlighting our reporting that Beazley has now priced and secured $100 million of natural catastrophe reinsurance coverage through its third Fuchsia cat bond, issued via the London Bridge 2 PCC structure.
As a reminder, you can read all about this PoleStar Re Ltd. (Series 2026-1) catastrophe bond transaction in our Deal Directory, where you can analyse details of almost every cat bond ever issued and filter the list by peril to show only cyber cat bonds.
