Over $7 billion ILS and cat bonds listed on Bermuda Stock Exchange for first time

by Artemis on May 21, 2013

The total volume of insurance-linked listings, including catastrophe bonds and reinsurance-linked investment funds, on the Bermuda Stock Exchange (BSX) has grown by $1.25 billion through the start of 2013 to now stand at just over $7.06 billion. It is the first time the BSX has reached the $7 billion milestone and comes despite $775m of recent cat bond maturities. The number is set to rise further as more cat bonds settle later this month.

When we last covered the volume of cat bonds and ILS listed on the BSX at he start of 2013 it had just passed $5.81 billion. The addition of six new catastrophe bond issuances in 2013, as well as a new $52m share offering from the Blue Capital Global Reinsurance Fund, has helped the BSX grow its ILS listing volume by over 21% in less than six months.

BSX President and Chief Executive Officer Greg Wojciechowski commented on the milestone; “Listings of ILS instruments on the BSX have exceeded $7bn which represents a new record for us. Bermuda has been a trusted partner to the global insurance and reinsurance industry for decades and the BSX is delighted to be part of continuing this tradition by lending our support to the growing ILS assets class. Bermuda is one of the three key risk capital centers in the world and has developed deep experience in supporting all aspects of global reinsurance business. It is clear that this foundation is being leveraged to support an ILS cottage industry that is developing rapidly in Bermuda. The BSX is committed to responding to the needs of our insurance clients and partners by delivering all aspects of exchange support, including price discovery and post trade services, and we are appreciative to the industry for its confidence in the Bermuda market.”

The BSX has added $1.98 billion of new catastrophe bond volume to its listings in 2013. That number will likely rise further when the $175m Blue Danube II Ltd. (Series 2013-1) settles later this week and is expected to list its notes on the exchange.

Update 23rd May: Blue Danube II Ltd. has now been admitted for listing, adding another $175m to the total listed which now reaches just under $7.24 billion. We’ve updated the numbers in the table below to reflect the addition of this cat bond.

Here is a useful list of all the insurance-linked listings on the BSX, broken down into catastrophe bonds and reinsurance-linked investment funds.

ILS and catastrophe bonds currently listed on the Bermuda Stock Exchange

Issuer Cedent Risks / Perils covered Size
Blue Danube II Ltd. (Series 2013-1) Allianz Argos 14 GmbH U.S., Caribbean, Central American, Mexican hurricane. U.S., Canadian earthquake $175m
Armor Re Ltd. (Series 2013-1) American Coastal Insurance Company Florida hurricanes $183m
Sanders Re Ltd. (Series 2013-1) Allstate U.S. hurricane, U.S. earthquake $350m
Bosphorus 1 Re Ltd. Turkish Catastrophe Insurance Pool Turkey earthquake $400m
Tar Heel Re Ltd. (Series 2013-1) North Carolina JUA / IUA North Carolina hurricane $500m
Merna Re IV Ltd. (Series 2013-1) State Farm U.S. earthquake (New Madrid region) $300m
Everglades Re Ltd. (Series 2013-1) Citizens Property Insurance Florida hurricanes $250m
Compass Re Ltd. (Series 2012-1) National Union Fire Insurance Co. of Pittsburgh U.S. hurricane, U.S. earthquake $400m
Lakeside Re III Ltd. Zurich American Insurance & Zurich Insurance Co. Ltd. U.S. and Canadian earthquake $270m
Queen Street VII Re Ltd. Munich Re U.S. hurricane, European windstorm $75m
Eurus III Ltd. Hannover Re European windstorm €100m
Embarcadero Re Ltd. (Series 2012-2) California Earthquake Authority California earthquake $300m
Queen Street VI Re Ltd. Munich Re U.S. hurricane, European windstorm $100m
Everglades Re Ltd. (Series 2012-1) Citizens Property Insurance Florida hurricanes $750m
Blue Danube Ltd. (Series 2012-1) Allianz Argos 14 GmbH U.S. hurricane, U.S. earthquake, Canada earthquake, Caribbean hurricane, Mexico hurricane $240m
Queen Street V Re Ltd. Munich Re U.S. hurricane, European windstorm $75m
Embarcadero Re Ltd. (Series 2012-1) California Earthquake Authority California earthquake $150m
Tramline Re Ltd. (Series 2011-1) Amlin AG U.S. hurricane, U.S. earthquake, European windstorm $150m
Golden State Re Ltd. (Series 2011-1) California State Compensation Insurance Fund Workers compensation claims resulting from California earthquakes $200m
Compass Re Ltd. (Series 2011-1) National Union Fire Insurance Co. of Pittsburgh U.S. hurricane, U.S. earthquake $575m
Queen Street IV Capital Ltd. Munich Re U.S hurricane, European windstorm $100m
Embarcadero Re Ltd. (Series 2011-1) California Earthquake Authority California earthquake $150m
Queen Street III Capital Ltd. Munich Re European windstorm $150m
Queen Street II Capital Ltd. Munich Re U.S. hurricane, European windstorm $100m
Montana Re Ltd. (Series 2010-1) Flagstone Re U.S. hurricane, U.S. earthquake, European windstorm, Japan typhoon, Japan earthquake $210m
Lodestone Re Ltd. (Series 2010-2) Chartis U.S. hurricane, U.S. earthquake $450m

Total catastrophe bonds and insurance-linked securities: $6.733 billion

Blue Capital Global Reinsurance Fund Limited $152m
CATCo Reinsurance Opportunities Fund – Ordinary Shares $353m

Total reinsurance-linked investment fund share classes (approximate): $505m

Total insurance-linked listings on the BSX currently: $7.238 billion

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