QBE Insurance Group has successfully completed a new catastrophe bond transaction, securing US$400 million in collateralised reinsurance protection through its Bridge Street Re programme. The issuance underscores QBE’s continued commitment to diversifying its reinsurance strategy and strengthening protection against peak natural catastrophe risks across multiple regions.
The latest deal, known as Series 2025-2, provides coverage for named storms and earthquakes in the United States, as well as earthquakes in Australia and New Zealand. Structured on an indemnity trigger and per-occurrence basis, the bond offers protection over a three-year term. The transaction closed on 29 December 2025 and will incept on 1 January 2026, ensuring seamless protection for the upcoming underwriting year.
This issuance marks the second catastrophe bond sponsored by QBE under the Bridge Street Re platform. The programme was first launched in January 2025, when QBE placed a US$250 million bond covering named storms and earthquake events across the United States, Puerto Rico, the US Virgin Islands, the District of Columbia, and all provinces and territories of Canada. That inaugural transaction was structured on an annual aggregate basis, also over a three-year period.
Senior QBE executives highlighted the strategic importance of the transaction. Peter Burton, QBE Group Chief Underwriting Officer, said the deal enables the insurer to capitalise on the expanding insurance-linked securities (ILS) market, complementing traditional reinsurance placements. According to Burton, multi-year protection through catastrophe bonds helps QBE manage peak peril exposures while cultivating new relationships with global capital market investors.
Chris Killourhy, incoming Group Chief Financial Officer at QBE, described the issuance as a significant milestone for the Bridge Street Re programme. He noted that the strong investor response further diversifies QBE’s capital base and enhances its overall capital management framework, reinforcing resilience amid increasingly volatile catastrophe loss trends.
The transaction was arranged by Aon Securities LLC, which acted as sole structuring agent and sole bookrunner. Legal counsel to QBE was provided by Willkie Farr & Gallagher LLP. Jordan Brown, Managing Director at Aon Securities, said investor participation reflected confidence in QBE’s underwriting discipline and global reputation, as well as growing appetite for diversified commercial property catastrophe risk.
Key Features of QBE’s Bridge Street Re Catastrophe Bonds
| Feature | Series 2025-2 | Series 2025-1 |
|---|---|---|
| Issuance date | December 2025 | January 2025 |
| Limit | US$400 million | US$250 million |
| Covered perils | US named storms; earthquakes in US, Australia, NZ | US & Canada named storms and earthquakes |
| Trigger type | Indemnity, per occurrence | Indemnity, annual aggregate |
| Term | Three years | Three years |
| Programme | Bridge Street Re | Bridge Street Re |
With its second catastrophe bond now in place, QBE continues to demonstrate a proactive approach to risk transfer, combining traditional reinsurance with capital markets solutions to support long-term underwriting stability and financial strength.