Beazley, the specialist insurer, has secured $300 million of cyber reinsurance protection through its latest cyber catastrophe bond, PoleStar Re Ltd (Series 2026-1), issued via a Bermudian-domiciled special purpose vehicle.

According to Artemis.bm, the transaction is the fourth and largest 144A cyber catastrophe bond sponsored by Beazley under its PoleStar Re programme and brings the insurer’s total outstanding cyber cat bond protection to $670 million.

Combined with more than $1 billion of cyber excess-of-loss cover, Beazley said this represented the largest and most comprehensive cyber reinsurance programme in the market.

The three-year bond provides indemnity-based, per-occurrence protection against low-probability, high-severity cyber events, including systemic losses, through to the end of 2028.

In a first for cyber catastrophe bonds, the structure includes three sub-layers with aligned multiyear terms.

Strong investor demand led Beazley to increase the size of the transaction from an initial target of at least $200 million, first to $280 million and ultimately to $300 million.

The final structure includes three tranches: a $140 million class A tranche priced at a 7 per cent risk interest spread; a $100 million Class B tranche priced at 9 per cent; and a $60 million Class C tranche priced at 10.5 per cent.

Paul Bantick, Beazley’s chief underwriting officer, said investor appetite for cyber-risk continued to grow.

“This latest bond is evidence of our ability to drive sustained growth in the cyber insurance-linked securities market,” he added.

Beazley has outlined plans to expand its presence in Bermuda. It announced in November that it had earmarked $500 million to establish a new office on the island, subject to regulatory approval.

The insurer said the operation, expected to be developed in early 2026, was projected to generate $400 million by 2030, with about half coming from alternative risk transfer activities.

The Bermuda business is expected to focus on captives, insurance-linked securities, cyber insurance, parametric solutions and speciality insurance and reinsurance, while also supporting the development of a fee-earning ILS platform in partnership with another market entrant.

Gallagher Securities acted as sole structuring agent and joint bookrunner alongside Aon. Risk modelling was provided by Moody’s RMS, with CyberCube supplying a second opinion, and Mayer Brown served as deal counsel.