A subsidiary of Bermudian-based Fidelis Insurance Holdings Ltd has successfully closed a new catastrophe bond through the issuance of notes by its Herbie Re Ltd programme.

Fidelis Insurance Bermuda Ltd issued Series 2024-2 Class A Principal-at-Risk Variable Rate Notes, Series 2024-2 Class B Principal-at-Risk Variable Rate Notes, and Series 2024-2 Class C Principal-at-Risk Variable Rate Notes.

The company said this is the sixth series of notes issued by Herbie Re and will provide the Fidelis Insurance Group with $375 million of collateralised reinsurance protection.

The Series 2024-2 notes issued will be exposed to insured industry losses resulting from named storm and earthquake covered events occurring in the 50 states of the United States and the District of Columbia, Puerto Rico and the US Virgin Islands, as reported by Property Claim Services, on an annual aggregate basis.

The Class A notes and the Class B notes are expected to provide the Fidelis Insurance Group with approximately four years of protection, with the risk period scheduled to end on December 31, 2028.

The Class C notes are expected to provide the Fidelis Insurance Group with approximately two years of protection, with the risk period scheduled to end on December 31, 2026.

Ian Houston, Fidelis Insurance Group chief underwriting officer, said: “These bonds continue to be a crucial part of our strategic capital management and risk mitigation plan.

“Enhancing our overall reinsurance strategy, which includes quota share, excess of loss, and industry loss warranties, the Herbie Re catastrophe bonds support our strategic underwriting partner The Fidelis Partnership.”

Richard Coulson, deputy group chief underwriting officer at The Fidelis Partnership, added: “This tranche of coverage represents the newest tool employed by Fidelis Insurance Group, supporting The Fidelis Partnership as we continue to capitalise on opportunities across catastrophe-exposed lines of business in 2025 and beyond.”

The catastrophe bond was priced on December 17 and closed on December 27.