Arthur J. Gallagher & Co.

(New York Stock Exchange)
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Somewhat Bullish +50

Arthur Re platform streamlined index-trigger cat bond issuance for Oak Global: Gallagher Re

AI-generated analysis

πŸ“ˆ Gallagher Re's new Arthur Re Ltd. platform successfully streamlined the issuance of a $150 million index-trigger catastrophe bond for first-time sponsor Oak Global.

🏒 Arthur Re Ltd. is a Bermuda-domiciled unrestricted special purpose insurer (SPI) and segregated accounts company established last year to facilitate efficient market access.

πŸ”„ The structure was originally designed by Artex Risk Solutions but is now driven by Gallagher Re's specialist capital markets and insurance-linked securities division.

🎯 The platform aims to simplify index-trigger catastrophe bond sponsorship while converting more industry-loss warranty business into catastrophe bonds for easier multi-year capacity access.

⚑ As the sole structuring agent and bookrunner, Gallagher Securities executed the debut transaction using the new Arthur Re Ltd. infrastructure.

🌍 The Quercian Re 2026-1 issuance provides retrocession coverage for US and Canada named storms, earthquakes, and wildfires across a three-year term ending in May 2029.

πŸ’Ό Oak Global's OAK Reinsurance Syndicate 2843 utilizes the bond to enhance its underwriting portfolio with diversified capital markets capacity.

πŸ—£οΈ Jason Bolding, Global CEO of Gallagher Securities, stated that the deal demonstrates Arthur Re's strength in delivering faster and more efficient index catastrophe bond issuance.

🧩 Paddy Ellis, Global Head of Retrocession at Gallagher Re, noted the transaction highlights the firm's product-agnostic approach to integrating innovative retrocession solutions.

πŸ“Š The $150 million transaction is structured on an annual aggregate and industry loss trigger basis to run across a three-year term.

πŸ”— Readers can find full details on this and other catastrophe bond transactions in the Artemis Deal Directory.

🎧 Additional video interviews and podcast content regarding insurance-linked securities are available via Artemis Live.

Bullish Signals
  • Gallagher Re's new Arthur Re platform successfully streamlined the issuance of a $150 million index-trigger catastrophe bond for first-time sponsor Oak Global, demonstrating significant efficiency and speed to market.
  • The debut transaction, Quercian Re 2026-1, provides OAK Reinsurance Syndicate 2843 with diversified capital markets capacity covering US and Canada named storms, earthquakes, and wildfires.
  • The structured issuance runs across a three-year term to the end of May 2029, enabling buyers to access multi-year capacity more easily with lower friction.
  • Jason Bolding, Global CEO of Gallagher Securities, highlighted that the platform delivers faster, more efficient index catastrophe bond issuance while enhancing connections between clients and capital markets.
  • Paddy Ellis, Global Head of Retrocession at Gallagher Re, noted the transaction showcases how the firm integrates innovative retrocession solutions to access suitable and cost-efficient capital for clients.
Risk Factors
  • The article describes a new platform launch and successful transaction, but does not mention any negative aspects, risks, or concerns for Arthur J. Gallagher & Co. (AJG) or its subsidiaries.
Full Analysis
Gallagher Re has successfully utilized its newly established Arthur Re Ltd. platform to streamline the issuance of index-trigger catastrophe bonds, as demonstrated by a recent $150 million transaction for first-time sponsor Oak Global. The deal, titled Quercian Re 2026-1, was structured and executed by Gallagher Securities acting as both the sole structuring agent and bookrunner, marking the debut use of the Arthur Re platform. This Bermuda-domiciled unrestricted special purpose insurer (SPI) and segregated accounts company was designed to simplify the sponsorship and issuance process for index catastrophe bonds, thereby reducing both costs and time-to-market while converting industry-loss warranty business into catastrophe bonds. The specific transaction provides retrocession coverage for the OAK Reinsurance Syndicate 2026-1 across a three-year term ending in May 2029. The $150 million issuance covers US and Canada named storms, earthquakes, and wildfire events on an annual aggregate and industry loss trigger basis. Gallagher Re executives highlighted that this deal enhances Oak Global's underwriting portfolio with diversified capital markets capacity and demonstrates the platform's ability to deliver faster, more efficient index catastrophe bond issuance. The company emphasized its product-agnostic approach in integrating innovative retrocession solutions like Arthur Re to access cost-efficient capital for clients.