One Shield Re raises $115M in debut catastrophe bond issuance
What's the deal? One Alliance North America Insurance Company, a US homeowners and commercial lines specialist underwriter, has secured $115M in multi-peril reinsurance through the capital markets via its debut catastrophe bond issuance, One Shield Re Ltd. (Series 2026-1).
Appleby acted as Bermuda counsel on the transaction, advising on all aspects of Bermuda law. The deal was led by Bermuda managing partner Brad Adderley, with support from senior associates Aleisha Hollis and Melinda Mayne, and associate Milaun Perott.
Appleby Global Corporate Services (Bermuda) Ltd provided corporate administration services, while Appleby Global Listing Services (Bermuda) Ltd acted as listing sponsor to the issuer.
Why now? Catastrophe bonds — which transfer natural disaster risk from insurers to capital market investors — have surged in popularity as climate-related losses mount. For a homeowners and commercial lines carrier like One Alliance, tapping the cat bond market offers a way to diversify its reinsurance sources beyond traditional reinsurers.
What could go wrong? Cat bonds carry inherent risk for investors: if a qualifying catastrophe occurs, bondholders can lose principal. For the issuer, the challenge lies in pricing — if spreads widen or investor appetite cools, future issuances could become costlier.
The signal: The catastrophe bond market has been on a tear, with record issuance volumes as insurers seek alternatives to traditional reinsurance amid escalating climate-related losses. One Alliance's debut $115 million deal highlights how mid-market carriers — not just global reinsurance giants — are increasingly tapping capital markets for catastrophe risk transfer, a trend that points to a deepening and broadening of the insurance-linked securities space.
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