BSX listed ILS & cat bond volume jumps 45% to $8.4 billion in 2013

by Artemis on October 17, 2013

The total amount of insurance-linked (ILS) listings, including catastrophe bonds, insurance-linked securities and reinsurance-linked investment funds, on the Bermuda Stock Exchange (BSX) has grown to an all-time high of $8.4 billion.

When Artemis last reported on the volume of listed insurance and reinsurance-linked instruments on the exchange in May that number was just over $7.06 billion. So the volume of listed ILS, cat bonds and reinsurance-linked funds on the BSX has increased by approximately $1.24 billion in just less than five months.

That’s a similar rate of growth seen at the BSX to the first five months of the year, which saw the volume of listings increase from $5.81 billion at the beginning of 2013, to  $7.06 billion in May and now up again to $8.4 billion by mid-October. That means the volume of listed ILS, cat bonds and reinsurance-linked funds on the BSX has increased by a staggering 45% so far in 2013 which is extremely impressive growth.

BSX President and Chief Executive Officer Greg Wojciechowski commented on the exchange’s continued success; “We’re delighted to hit this new milestone in terms of insurance-linked listings on the Bermuda Stock Exchange. The rapid growth in listings seen in 2013 is testament to the markets continuing growth and its acceptance of the BSX as a home for transactions and instruments.”

Of course the BSX is not just home to insurance-linked listings and Wojciechowski recognises the importance of building out the BSX as a respected international stock exchange platform to support many different markets.

Wojciechowski continued; “As the national stock exchange of Bermuda, the BSX has worked diligently to build a platform that has modernized Bermuda’s domestic capital market while providing listing, trading and settlement services for international securities.   In this regard, the BSX is pleased with the traction it has experienced to date supporting a variety of asset classes, including the alternative fund space, equity derivative warrants, equity, fixed income and now the alternative risk transfer market.”

So far in 2013 the BSX has listed $3.293 billion worth of new catastrophe bonds on the exchange. That’s nearly 53% of the total $6.24 billion of cat bond and ILS issuance that has been recorded in the Artemis Deal Directory so far this year.

Wojciechowski commented on this success; “Bermuda is the logical venue for the convergence of the insurance and capital markets and the BSX will strive to continue to add value to the creators and investors of insurance linked securities.”

The latest catastrophe bond to come to market, Galileo Re Ltd. 2013-1 which launched just this week, involves another Bermuda domiciled issuer so Artemis believes it is likely that it may also seek a listing on the BSX for its notes. If that is the case then the volume of listings could reach at least $8.575 billion (or more if the cat bond upsizes) by the end of October.

Here is a useful list of all the insurance and reinsurance-linked listings on the BSX, broken down into catastrophe bonds and reinsurance-linked investment funds, with the most recent transactions first and including links to more details on the transactions where available.

ILS and catastrophe bonds currently listed on the Bermuda Stock Exchange

Issuer Cedent Risks / Perils covered Size
Nakama Re Ltd. (Series 2013-1) Zenkyoren Japan earthquake $300m
Kane SAC Ltd – Series 1-2013 Texas Windstorm Insurance Association (TWIA) U.S. North American (Texas) wind $10m
Northshore Re Limited (Series 2013-1) AXIS Capital Holdings Ltd. subsidiaries U.S. hurricane, U.S. earthquake $200m
MetroCat Re Ltd. (Series 2013-1) First Mutual Transportation Assurance Co. Storm surge (named storm induced) $200m
Tradewynd Re Ltd. (Series 2013-1) AIG U.S., Caribbean, Gulf of Mexico named storms. U.S., D.C., Canada earthquake $125m
Mona Lisa Re Ltd. (Series 2013-2) Renaissance Re and DaVinci Re U.S. and Puerto Rico named storms. U.S. earthquakes $150m
Tramline Re II Ltd. (Series 2013-1) Amlin AG U.S earthquake, Canada earthquake $75m
Queen Street VIII Re Ltd. Munich Re U.S. hurricane, Australia cyclone $75m
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 $130m
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: $7.868 billion

Blue Capital Global Reinsurance Fund Limited $159m
CATCo Reinsurance Opportunities Fund – Ordinary Shares $383m

Total reinsurance-linked investment fund share classes (approximate): $542m

Total insurance-linked listings on the BSX currently: $8.41 billion

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