QBE Strengthens Resilience with New Catastrophe Bond

QBE Insurance Group has successfully completed a US$400 million catastrophe bond issuance, reinforcing its global risk management and capital strategies. The bond has been issued under the Group’s “Bridge Street Re” programme, offering fully collateralised reinsurance protection. By diversifying sources of risk transfer, this latest transaction enhances QBE’s ability to absorb losses from major natural catastrophes while maintaining robust financial stability.

The new bond, designated Bridge Street Re Series 2025-2, provides coverage for named US hurricanes, as well as earthquake exposures in the United States, Australia, and New Zealand. Structured on an indemnity and “per-occurrence” basis, the bond links payouts directly to QBE’s actual losses rather than modelled estimates, ensuring a tight alignment between risk and protection. The three-year bond, settled on 29 December 2025, became effective on 1 January 2026, aligning with the commencement of the Group’s new underwriting year.

This issuance marks QBE’s second catastrophe bond under the Bridge Street Re platform. The first bond, issued in January 2025, raised US$250 million and covered hurricanes and earthquakes across the United States, Puerto Rico, the US Virgin Islands, the District of Columbia, and Canadian provinces and territories. That inaugural bond was structured as an annual aggregate indemnity, providing protection against multiple events within a year.

Senior QBE executives emphasised the strategic significance of the latest transaction. Peter Burton, Chief Underwriting Officer, noted that active participation in the rapidly growing insurance-linked securities market complements traditional reinsurance while expanding access to alternative capital. He highlighted that long-dated catastrophe bond protection strengthens the Group’s stability during major events and deepens relationships with global institutional investors.

Newly appointed Group Chief Financial Officer Chris Killory described the deal as a key milestone for the Bridge Street Re programme, reflecting investor confidence in QBE’s underwriting discipline and risk management framework. With climate change and urbanisation increasing volatility in natural catastrophe losses, this added capacity will help preserve the Group’s financial resilience.

Aon Securities LLC acted as sole structuring and bookrunning agent, with Wilkie Farr & Gallagher LLP providing legal advice. Market analysts note that the transaction demonstrates how leading insurers are blending capital market solutions with traditional reinsurance to achieve long-term balance sheet stability and capital efficiency.

Key Features of QBE’s Bridge Street Re Catastrophe Bonds

In summary, the Series 2025-2 catastrophe bond underlines QBE’s commitment to long-term, disciplined, and multi-layered natural catastrophe risk management. By combining traditional reinsurance with capital market solutions, QBE is fortifying its position in an increasingly complex risk environment.