BSX ends 2013 at high of $9.713 billion listed ILS & cat bonds

by Artemis on January 6, 2014

By the end of 2013 the Bermuda Stock Exchange (BSX) saw the total volume of insurance-linked listings, including catastrophe bonds, insurance-linked securities and reinsurance-linked investment funds, on the exchange hit $9.713 billion, another high.

Just a few weeks earlier in December, the BSX reached $9 billion of insurance and reinsurance-linked listings on the exchange for the first time. By the end of 2013 the BSX added another $552m from four more catastrophe bond transactions (the $172m Loma Reinsurance (Bermuda) Ltd. (Series 2013-1), $250m VenTerra Re Ltd. (Series 2013-1), $75m Queen City Re Ltd. (Series 2013-1) and the approximately $55m Windmill I Re Ltd. (Series 2013-1)) which were all listed on the exchange in late-December.

Over the course of 2013 the BSX has grown its insurance and reinsurance-linked listings by 67%, from beginning the year with $5.81 billion of listings, increasing that to  $7.06 billion in May, it rose again to $8.4 billion by mid-October, then reaching $9.161 billion by the 19th December before finishing the year at the new high of $9.713 billion.

Commenting on the successful year at the BSX, President and Chief Executive Officer Greg Wojciechowski stated; “2013 ended strongly with a record number of ILS listings. The BSX’s ILS growth is a significant achievement accomplished through the hard work and commitment of many in and outside Bermuda who work to ensure that the Bermuda platform meets and exceeds the expectations of the market and our clients.”

BSX Chief Compliance Officer, Mr. James McKirdy added; “Year on year listings grew by 32 securities in challenging global economic conditions. In particular, new listings grew by 81 securities including 42 Insurance Linked Securities with a capitalization value of $4.617 billion.”

The number of insurance-linked securities, largely catastrophe bonds, listed on the BSX grew to 77 from 38 (a 103% increase) over the course of 2013, while the value of listed ILS and reinsurance-linked funds grew to $9.71billion from $5.81 billion.

Mr. Wojciechowski added; “The BSX ended the year on an extremely positive note. Two important developments were the continued growth in our Insurance Linked Securities listing business and the work that we have accomplished in supporting international Small and Medium Enterprise companies (SME) capital raising and listings. The BSX ended the year with a record number of ILS listed issues assisting Bermuda to firmly establish itself as a centre of excellence for the creation, listing and servicing of the ILS asset class.

Bermuda’s leadership in the global insurance and reinsurance industry for decades and its emergence as a centre of excellence for ART/ILS transactions and vehicles reflects the deep understanding of the market we serve and the ability to readily adapt to changes, to provide commercial solutions and serve clients around the world.

The BSX has been operating a stock exchange platform since 1971 and has recently upgraded its trading environment to NASDAQ/OMX’s x-Stream trading technology.  This technology is used by over 70 marketplaces in 50 countries. Operating with X-stream technology, the BSX is now the most powerful trading venue in the offshore markets as defined by performance, efficiency and throughput.”

The $4.617 billion of new insurance and reinsurance-linked listings added to the BSX in 2013 is particularly impressive when you consider that $4.545 billion of this is new catastrophe bond transactions. With total 2013 catastrophe bond and ILS issuance ending the year at $7.64 billion, the BSX has seen almost 60% of this issuance listed on the exchange.

Mr. Wojciechowski finished by saying; “By leveraging the Exchange’s longevity in the global capital markets and its robust technical and operational platform, we hope to be in a position to provide additional stock exchange services to the growing ART/ILS market as capital allocation to the sector continues and it develops additional technology needs.”

With a number of cat bonds due to mature in the coming weeks the BSX’s total may fluctuate a little this year, until more new issues come to market. However the strong growth seen in 2013 is sure to mean that Bermuda picks up a healthy share of the new cat bonds issued in 2014.

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. You can read about ever catastrophe bond and ILS deal in the Artemis Deal Directory.

ILS and catastrophe bonds currently listed on the Bermuda Stock Exchange

Issuer Cedent Risks / Perils covered Size
Windmill I Re Ltd. (Series 2013-1) Achmea Reinsurance Company N.V. Dutch windstorm $55m
Queen City Re Ltd. (Series 2013-1) American Modern Insurance Group, Inc. U.S. named storms $75m
VenTerra Re Ltd. (Series 2013-1) QBE Insurance Group Ltd. subsidiaries U.S. earthquake, Australia cyclone, Australia earthquake $250m
Loma Reinsurance (Bermuda) Ltd. (Series 2013-1) Argo Group Tropical cyclones, U.S earthquake, U.S. severe thunderstorm $172m
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: $9.12 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: $9.713 billion

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