Bermuda-based reinsurer Ariel Re Ltd. said Monday it has completed the Titania Re III disaster bond, with an option to purchase carbon offset options from a qualified vendor to generate carbon credits in the event of a significant hurricane or earthquake.
The disaster bond is the third issue from Titania Re Ltd. Series 2023-1 Notes.
Titania Re III provides Ariel Re with $125 million in reinsurance coverage for named storms and earthquakes in all US states, Puerto Rico, the US Virgin Islands and Canada with an industrial loss trigger over three years, it said in a statement.
Ariel Re also said it will seek to purchase carbon offset options from a qualified supplier to generate carbon credits in the event of a significant hurricane or earthquake that requires the replacement of a large number of homes, commercial properties and vehicles.
The disaster bond closed on February 23, with Howden Tiger Capital Markets and Advisory as sole structuring agent and joint bookrunner, with Aon Securities LLC as joint bookrunner.
Ariel Re, with offices in Bermuda, London and Hong Kong, operates mainly through Syndicate 1910 in London and also offers access to Lloyd’s Europe through Syndicate 5336, the statement said.