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This article covers Beazley's $300M cyber catastrophe bond, relevant to AI safety as it reflects growing financial market recognition of systemic cyber risk—including AI-enabled cyberattacks—and the development of risk transfer mechanisms for large-scale cyber events.

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Summary

Beazley has issued a $300 million cyber catastrophe bond (PoleStar Re Series 2026-1) through a Bermuda special purpose vehicle, its fourth and largest such issuance, bringing total outstanding cyber cat bond protection to $670 million. The three-year, indemnity-based bond covers low-probability, high-severity systemic cyber events through 2028. Strong investor demand caused the deal to grow from an initial $200M target.

Key Points

•Beazley's $300M cyber cat bond is its fourth and largest under the PoleStar Re programme, raising total cyber cat bond protection to $670M.
•Combined with $1B+ in cyber excess-of-loss cover, Beazley claims the largest and most comprehensive cyber reinsurance programme in the market.
•The bond covers systemic, low-probability/high-severity cyber events with a novel three-sub-layer structure with aligned multiyear terms.
•Strong investor demand grew the deal from $200M to $300M, with three tranches priced at 7%, 9%, and 10.5% risk interest spreads.
•Beazley is expanding into Bermuda with a $500M investment targeting cyber ILS, parametric solutions, and specialty reinsurance by 2026.

Cited by 2 pages

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AI Cyber Damage: Bounding the Tail	Analysis	--
Cyber Insurance Market Signals	Analysis	--

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Beazley secures $300m cyber cat bond in Bermuda vehicle

Claire Shefchik

Created: Dec 17, 2025 08:02 AM

Paul Bantick, chief underwriting officer, Beazley (File photograph) 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.