Chubb secures East Lane Re VII cyber cat bond at upsized $150m

Chubb has now successfully secured the 50% upsizing of its first cyber catastrophe bond Artemis has learned, with the East Lane Re VII Ltd. (Series 2024-1) transaction now priced to provide the company $150 million in cyber reinsurance protection.

Chubb started the offering process for its debut 144A cyber catastrophe bond at the end of November, aiming to secure $100 million in protection from this East Lane Re VII issuance.

This transaction is the eighth catastrophe bond named East Lane Re to be sponsored by Chubb, but the first since 2015.

It’s also a notable deal as one of now four 144A cyber catastrophe bond deals to be launched in just the last few weeks.

The East Lane Re VII Ltd. cyber catastrophe bond has been structured to provide Chubb with a two-year source of reinsurance protection against widespread cyber loss events, on an indemnity trigger and per-occurrence basis.

As we reported yesterday, the target size for the issuance was raised by 50% to $150 million, while the price guidance was raised to the top-end of the initial range.

We’ve now learned that the East Lane Re VII Ltd. cyber cat bond notes have now been priced and Chubb has successfully secured the increase by 50%, from the initial $100 million target, to secure $150 million of cyber reinsurance from its debut cyber cat bond sponsorship.

The now confirmed to be $150 million tranche of East Lane Re VII Ltd. Series 2024-1 Class A notes have a combined initial expected loss of 1.387% and were initially offered to investors with spread price guidance in a range from 8.75% to 9.25%.

As we said, that price guidance was raised to the top-end, for a spread of 9.25% and we’re now told that this is where the cyber cat bond notes were priced late yesterday.

Meaning that Chubb has successfully upsized the reinsurance coverage its first cyber cat bond deal will provide by 50%, while at the same time securing the coverage priced within the guidance, albeit at the upper-end.

This is now the third 144A cyber cat bond to be successfully priced in recent weeks, providing a clear signal to potential future cyber cat bond sponsors that well-structured offerings are deemed acceptable and the cyber cat bond market is well and truly open for business.

You can read all about this East Lane Re VII Ltd. (Series 2024-1) catastrophe bond from Chubb and every other cat bond issued in the Artemis Deal Directory.