BSX listed ILS & cat bond volume passes $9 billion for first time

by Artemis on December 19, 2013

The total volume of the insurance-linked listings, including catastrophe bonds, insurance-linked securities and reinsurance-linked investment funds, on the Bermuda Stock Exchange (BSX) has passed $9 billion for the first time on record.

With the completion, and listing in Bermuda, of insurer AIG’s latest catastrophe bond yesterday, the BSX hit a new milestone at $9.161 billion of insurance-linked listings (Update: with the completion of Queen City Re and the issuance of Windmill I Re, both of which listed on the BSX, this total stood at $9.291 billion from the 24th December).

The addition of the $400m Tradewynd Re Ltd. (Series 2013-2), which took 2013 cat bond and ILS issuance to $7.1 billion and the outstanding market to over $20 billion for the first time, sees the Bermuda Stock Exchange now playing listing host to $9.161 billion of risk capital from the ILS and catastrophe reinsurance market.

The growth seen at the BSX in terms of listed cat bonds, ILS and insurance-linked funds this year has been quite staggering. The BSX began the year with $5.81 billion of listings, that increased to  $7.06 billion in May and rose again to $8.4 billion by mid-October.

Now at $9.161 billion listed, possibly with more to come by the end of the year as all three catastrophe bonds which have yet to complete use Bermuda domiciled special purpose insurance vehicles, the BSX has close to half of the ILS and cat bond market listed on its exchange.

Greg Wojciechowski, BSX President and Chief Executive Officer, commented on the latest ILS listings total; “We are delighted to reach this milestone which is truly an achievement for the BSX. This development clearly underscores our position as a significant capital market supporter of the ILS/ART asset class. Of course this would not have been possible without so many contributing factors among them, Bermuda’s position as the logical location for the convergence of the insurance and capital markets. Bermuda’s depth and breadth of experience in the global reinsurance industry lends itself to supporting the market as trends re-shape the market’s traditional landscape.”

In terms of growth seen this year, the BSX’s insurance-linked listings volume has increased by an impressive 58% over the course of 2013.

That equates to new listings of $3.993 billion worth of catastrophe bonds on the exchange in 2013, from 17 transactions. That’s over 56% of the total $7.1 billion of cat bond and ILS issuance that has been recorded in the Artemis Deal Directory so far this year.

If all three of the remaining cat bonds to complete in 2013 were to list their notes on the Bermuda Stock Exchange it would add at least another $440m to the total amount of insurance-linked listings on the BSX.

Wojciechowski added; “We are firmly committed to providing continued stock exchange support to the ILS/ART asset class. The BSX exchange operating platform is driven by NASDAQ/OMX state of the art technology and the BSX looks forward to working with the industry to leverage this to help drive sector growth and to provide additional capital market support.”

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
Tradewynd Re Ltd. (Series 2013-2) AIG U.S., Caribbean, Gulf of Mexico named storms. U.S., Canada earthquake $400m
Galileo Re Ltd. (Series 2013-1) Catlin U.S. named storms, U.S. earthquake, Canada earthquake, European windstorm $300m
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: $8.568 billion

Blue Capital Global Reinsurance Fund Limited $185m
CATCo Reinsurance Opportunities Fund – Ordinary Shares $408m

Total reinsurance-linked investment fund share classes (approximate): $593m

Total insurance-linked listings on the BSX currently: $9.161 billion

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