Ariel Re issues cat bond with carbon offset feature

Bermuda-based reinsurer Ariel Re Ltd. on Monday said it has completed the catastrophe bond Titania Re III, with an option to buy carbon offset options from a qualified provider to generate carbon credits in the event of a significant hurricane or earthquake.

The catastrophe bond is the third issuance from Titania Re Ltd. Series 2023-1 Notes.

Titania Re III provides Ariel Re with $125 million of collateralized reinsurance cover for named storms and earthquakes in all U.S. states, Puerto Rico, the U.S. Virgin Islands and Canada with an industry loss trigger over three years, a statement said.

Ariel Re also said it will seek to buy carbon offset options from a qualified provider to generate carbon credits in the event of a significant hurricane or earthquake that requires a large number of homes, commercial properties and vehicles to be replaced.

The catastrophe bond closed on Feb. 23, with Howden Tiger Capital Markets and Advisory acting as sole structuring agent and joint bookrunner, with Aon Securities LLC acting as joint bookrunner.

Ariel Re, with offices in Bermuda, London and Hong Kong, operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336, the statement said.