Chubb targets 50% upsize to $150m for cyber cat bond East Lane Re VII

International re/insurance giant Chubb is aiming to upsize its first cyber catastrophe bond deal by as much as 50%, Artemis has learned, with the East Lane Re VII Ltd. (Series 2024-1) transaction now targeted to provide the company $150 million in cyber reinsurance.

Chubb began the offering process for its first full 144A cyber catastrophe bond at the end of November, with a target to secure $100 million in coverage from the East Lane Re VII issuance.

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

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

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

We’re now told that the size of the issuance from East Lane Re VII Ltd. has increased 50% from the initial $100 million target, with now $150 million of Class A Series 2024-1 notes expected to be sold to investors to collateralize a cyber reinsurance agreement.

The now $150 million of East Lane Re VII 2024-1 notes come with a combined initial expected loss of 1.387% and were offered to investors with spread price guidance in a range from 8.75% to 9.25%.

Remember that this cyber cat bond has expected loss metrics for two buckets of cyber risk, North American and International , with different attachment points for each as well.

Now, we’re told that Chubb has fixed the price guidance for the notes at 9.25%, so the upper end of the initial guidance.

So, while aiming to upsize the reinsurance coverage it secures from its first cyber cat bond deal, Chubb looks set to price it within guidance as well, albeit at the upper-end.

It’s very encouraging to see now a third 144A cyber cat bond on its way to pricing, which bodes well for future sponsors looking to tap the insurance-linked securities (ILS) market to transfer cyber risks.

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.