OAK Global completes $150M debut Quercian Re cat bond, doubling initial target
What's the deal? Oak GlobalDealroom has a profile for this one. Try Dealroom →, a specialist Lloyd's underwriting company, has completed its first catastrophe bond — the $150 million Quercian Re 2026-1 issuance. The deal doubled from its initial $75 million target after strong investor demand, with notes pricing below initial guidance.
The three-year bond provides fully collateralised retrocessional protection to OAK Reinsurance Syndicate 2843 against US and Canadian named storms and earthquakes, as well as US wildfire events. Coverage runs through to the end of May 2029.
The notes were issued through Arthur Re Ltd., a Bermuda-domiciled special purpose insurer managed by ArtexDealroom has a profile for this one. Try Dealroom →.
Why now? Oak Global's executives framed the issuance as a strategic milestone. "Entering the catastrophe bond market is an important moment in OAK Global's development," said Alex WinfieldDealroom has a profile for this one. Try Dealroom →, co-founder and chief capital officer. "It reflects both the continued build-out of our platform and our ambition to access a broader, more diversified base of capital partners."
Ciara Svensen, head of ceded for Oak Global, said cat bonds offer "an attractive and complementary source of protection, particularly for more remote peak perils, where we continue to see strong pricing and demand from investors."
What could go wrong? Cat bonds carry inherent risk for investors — if covered natural catastrophe losses hit trigger thresholds, bondholders can lose principal. For Oak Global, the challenge will be proving it can efficiently manage its retrocession programme across both traditional and alternative capital markets over the bond's three-year term.
The wildfire peril inclusion is notable given recent catastrophic losses in California, which could test investor appetite for future issuances if loss experience deteriorates.
The signal: Oak Global's ability to double its debut cat bond on tighter pricing underscores how hungry ILS investors remain for new sponsors, particularly those offering exposure to peak perils like US wildfire — a risk that has only grown more prominent after recent California losses. For a breakout-stage Lloyd's specialist, locking in three years of fully collateralised retrocession at below-guidance spreads is a strong early proof point for its capital-light, partnership-driven model.
Read more: Artemis
