Following the success of the PoleStar Re cyber catastrophe bond earlier this year, Gallagher Securities has placed another $160m Rule 144A Cyber Catastrophe Bond, taking the total series to $300M. The deal makes Gallagher Securities market leaders in the cyber cat bond space, with over 50% of the market by limit.
Cyber cat bonds are becoming a regular product offering and complement the property class for investors. The market has advanced significantly since Gallagher Securities – supported by Gallagher Re Cyber – pioneered the cyber catastrophe bond market in 2023 with over $80M of agency-placed cat light bonds (Cairney I, II and III).
Gallagher Securities’ Head of Cyber ILS, Theo Norris, commented: “This is testament to the compelling and replicable structure developed in PoleStar Re. There is plenty more to come for the Cyber ILS market, and the trajectory of diversifying capital entering the space is exciting for cedants and investors alike”.
The investor community has become more engaged with cyber-related investments in recent months and is rapidly developing its understanding of the risk class - from modelling to cyber security and mitigation.
Ian Newman, Head of Cyber at Gallagher Re added: “We have been accessing the capital markets in cyber insurance since 2017, and its remarkable how far we’ve come. Cyber truly is investable with the right structure and knowledge. We remain dedicated to developing further Cyber ILS products for the capital benefit of our clients.”
Gallagher Re has played a leading role in driving the advancement of cyber capacity, particularly in the early phases of cyber reinsurance. The framework built by the 60-strong cyber reinsurance team and Gallagher Securities division has attracted discussions with other capital-constrained cedants looking to solve their capacity needs.
Gallagher Re and Gallagher Securities also completed the market’s second retrocession Cyber Industry Loss Warranty in May 2024.
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