Fidelis Insurance Holdings Ltd has returned to the catastrophe bond market, securing $75 million of additional earthquake protection through a new issuance under its Herbie Re programme, the company announced.

The transaction, issued by Fidelis Insurance Bermuda Ltd, involves the placement of Series 2026-1 Class A Principal-at-Risk Variable Rate Notes through Herbie Re Ltd.

This marks the eighth catastrophe bond issued under the Herbie Re platform, underscoring Fidelis Insurance Group’s continued reliance on insurance-linked securities as a core component of its capital and risk management strategy.

The Series 2026-1 Notes provide annual aggregate, industry-loss triggered coverage against earthquakes affecting the United States and the District of Columbia.

With a term running through the end of 2029, the nearly four-year structure delivers fully collateralised retrocessional reinsurance protection, adding long-dated capacity to Fidelis’ external protection programme.

Ian Houston, chief underwriting officer of Fidelis Insurance Group, said the new issuance builds on the success of the firm’s prior catastrophe bond placements.

He described cat bonds as “a crucial element” of Fidelis’ capital management framework, citing their capital efficiency and ability to provide robust protection against severe events.

Mr Houston added that the latest issuance extends coverage across the group’s entire portfolio, including business written through The Fidelis Partnership and new underwriting partnerships, and complements other reinsurance arrangements such as quota share agreements, excess of loss treaties, and industry loss warranties.

The catastrophe bond priced on January 16, and closed on Thursday, amid ongoing investor appetite for diversified insurance-linked securities tied to US natural catastrophe risk.

The deal further highlights the role of the catastrophe bond market in providing insurers and reinsurers with alternative capacity as they manage peak natural catastrophe exposures in an evolving risk environment.