QBE Insurance Group has successfully completed a new US$400 million catastrophe bond, further strengthening its global reinsurance and capital management strategy. Issued under the group’s Bridge Street Re programme, the transaction provides fully collateralised reinsurance protection and reinforces QBE’s ability to manage large-scale natural catastrophe exposures through diversified sources of risk transfer.
The bond, designated Bridge Street Re Series 2025-2, offers protection against named hurricanes in the United States, as well as earthquake risks in the United States, Australia and New Zealand. Structured on an indemnity, per-occurrence basis, the coverage is directly linked to QBE’s actual losses rather than modelled parameters, ensuring close alignment between risk and protection. The notes have a three-year maturity, with the transaction closing on 29 December 2025 and becoming effective from 1 January 2026, coinciding with the start of the new underwriting year.
This issuance marks QBE’s second catastrophe bond under the Bridge Street Re platform. The inaugural transaction, completed in January 2025, raised US$250 million and provided broader geographic coverage, including the United States, Puerto Rico, the US Virgin Islands, the District of Columbia and all Canadian provinces and territories. That earlier bond was structured on an annual aggregate indemnity basis, offering protection against the accumulation of losses over a full year rather than a single event.
Senior executives at QBE have highlighted the strategic importance of the latest deal. Group Chief Underwriting Officer Peter Burton noted that participation in the rapidly expanding insurance-linked securities (ILS) market enables QBE to complement traditional reinsurance with alternative capital. According to Burton, multi-year catastrophe bond protection enhances the group’s resilience to severe events while also deepening relationships with global institutional investors seeking uncorrelated returns.
Incoming Group Chief Financial Officer Chris Killory described the transaction as a significant milestone for the Bridge Street Re programme. He emphasised that strong investor demand reflects confidence in QBE’s underwriting discipline and risk management framework. The additional capacity, he said, further diversifies the group’s capital base and supports financial stability amid increasing volatility in natural catastrophe losses driven by climate change and urban concentration.
The transaction was structured and book-run solely by Aon Securities LLC, while legal advice to QBE was provided by Willkie Farr & Gallagher LLP. Market observers view the deal as another example of how major insurers are blending capital markets solutions with conventional reinsurance to achieve long-term balance sheet stability and pricing efficiency.
Key Features of QBE’s Bridge Street Re Catastrophe Bonds
| Feature | Series 2025-2 | Series 2025-1 |
|---|---|---|
| Issue date | December 2025 | January 2025 |
| Limit | US$400 million | US$250 million |
| Covered perils | US hurricanes; US, Australia & New Zealand earthquakes | US & Canada storms and earthquakes |
| Trigger structure | Indemnity, per occurrence | Indemnity, annual aggregate |
| Maturity | Three years | Three years |
| Programme | Bridge Street Re | Bridge Street Re |
Overall, the second Bridge Street Re catastrophe bond underlines QBE’s commitment to a long-term, disciplined and multi-layered approach to managing natural catastrophe risk. By combining traditional reinsurance with capital markets capacity, the group continues to position itself for resilience in an increasingly complex risk environment.