Beazley has today closed its first 144A cyber catastrophe bond providing cover of US$140m. The specialist insurer’s inaugural 144A bond builds on its US$81.5m cyber cat bond programme of 2023.

Named PoleStar Re Ltd, the Class A notes are designed to cover remote probability catastrophic and systemic events.

Structured on an indemnity trigger and per-occurrence basis, the bond runs for a two-year term through to the end of 2025.

The insurer's global head of cyber risks, Paul Bantick, forecasts that the cyber market will treble in size over the next four years. Cat bonds and the ILS market will be fundamental as demand and risk grows, he says.

“Investor interest in our issuance has been strong and their support is testament to the confidence they have in our ability to effectively manage cyber risk," he commented. "Building on the success of the market’s first cyber catastrophe bond programme in 2023, we expect to continue scaling our presence in the cyber insurance linked securities market, encouraging others to do the same.”

Gallagher Securities acted as sole structuring and book building agent, with risk modelling provided by Moody’s RMS, and a second view of risk by CyberCube. Mayer Brown served as deal counsel.

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