Ariel Re Sponsored Titania Re Ltd. (Series 2024-1) Notes

On November 21, 2024, Ariel Re sponsored a 144A Cat Bond through Titania Re Ltd.

• The 2024-1 Notes represent the fourth Titania Re Ltd. issuance
• The Class A notes priced at 6.25% – 18% below the mid-point of their initial price guidance
• The Class B notes priced at 9.50% – 13% below the mid-point of their initial price guidance
• For each class, the investor spread tightened by 175bps from the wide end of the initial price guidance

The 2024-1 Notes received strong investor support; upsizing from the original target of $175mm to $325mm

• Class A notes were upsized from $100mm to $175mm and the Class B notes upsized from $75mm to $150mm
• Titania 2024-1 is the first industry loss transaction to be issued in Q4 2024

The Class A and Class B notes offer index-based coverage across the U.S., Puerto Rico, U.S. Virgin Islands, D.C., and Canada

• Each class provides annual aggregate named storm and earthquake coverage

The issuance consisted of Class A and Class B notes of differing risk profiles

• Class A Expected loss (AIR; WSST): 4.14%
• Class B Expected loss (AIR; WSST): 5.52%

HCMA acted as Sole Structuring Agent and Joint Bookrunner

• Sole party responsible for working with client to optimize Cat Bond structure
• Presented innovative structuring ideas and assisted in finalizing basis risk analysis
• Assisted in all aspects of the structuring and placement including, but not limited to:
  • Structuring and coordinating with legal counsel
  • Providing in-depth basis risk analysis to maximize benefit to Ariel Re
  • Finalizing investor presentation and offering documents
  • Managing marketing process