BSX reaches 100 ILS & cat bond listings, amounting to over $13 billion

by Artemis on September 23, 2014

The Bermuda Stock Exchange (BSX) has hit another milestone in terms of insurance-linked listings of catastrophe bonds, ILS and insurance linked investment funds on the exchange, hitting 100 listings amounting to over $13 billion.

Growing its insurance-linked listings has been a core component of the BSX’s success as a capital market, however it shouldn’t be forgotten that the exchange plays host to many large corporations outside of the reinsurance and ILS space from both Bermuda and all over the world.

The insurance-linked listings growth at the BSX reflects the attractive regulatory environment in Bermuda, which has positioned itself as a leading domicile for catastrophe bond and insurance-linked securities (ILS) business. The BSX has capitalised on this and become one of the drivers for choosing the island as a home for ILS deals.

The growth-rate of insurance-linked listings at the BSX has been impressive in the four years or so that we’ve been tracking them. We first wrote about the exchange’s growing cat bond work back in July 2010 when its listings had just broken the $1 billion mark for the first time. We then tracked it through $2 billion in September 2011, $3.5 billion in April 2012, over $5 billion by December 2012, $7.2 billion by May 2013, more than $9 billion by December 2013 and $10 billion by end of Q1 2014 and rapidly onto $12.4 billion by May 2014.

“The growth in ILS listings at the BSX is clearly linked to the market’s comfort with Bermuda as an ILS domicile, due to the depth and breadth of industry related expertise here given the many years that Bermuda has been a respected and significant force in the reinsurance industry,” commented BSX President and Chief Executive Officer Greg Wojciechowski.

The chart below shows just how impressive that growth has been, based on data points we have tracked over the years.

Bermuda Stock Exchange (BSX) ILS and cat bond listings growth

Hitting $13 billion and 100 listed ILS structures means that just over 14% of the BSX’s total listings are now ILS related, which is impressive. The rate of growth reflects the attraction of ILS both as risk transfer tool and as an investment asset class.

Mr. Wojciechowski explained; “To pass 100 ILS related listings and the $13 billion volume this year is a testament to the continued growth of ILS, both as a source of reinsurance protection and as an asset class. Bermuda and the BSX look forward to continuing to provide a trusted platform that can facilitate the next phase of ILS market growth.”

The total volume of catastrophe bond listings on the BSX has now reached $12.896 billion, which is more than half of the outstanding market at this time, an impressive share of the market. Another $531m is contributed by two insurance-linked funds which are listed on the BSX and $63m from a listed collateralized reinsurance sidecar, with the grand total currently sitting at $13.49 billion of ILS listings.

Here is a useful list of all the insurance and reinsurance-linked listings on the Bermuda Stock Exchange, broken down into catastrophe bonds and reinsurance-linked investment funds. The most recent transactions are listed first, along with links to more details on each transaction where available.

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

Issuer Cedent Risks / Perils covered Size
Golden State Re II Ltd. (Series 2014-1) California State Compensation Insurance Fund Workers compensation claims resulting from California earthquakes $250m
Hoplon II Insurance Ltd. MyLotto24 Lottery winning risk $66m
Dodeka III Unknown U.S. multi-peril $10m
Kane SAC Limited (Series 2014-2) Unknown U.S. hurricane $7.32m
Alamo Re Ltd. (Series 2014-1) Hannover Rück SE, on behalf of reinsured Texas Windstorm Insurance Association (TWIA) Texas named storms $400m
Dodeka IV Unknown Florida and Gulf Coast wind $28m
Aozora Re Ltd. (Series 2014-1) Sompo Japan and Nipponkoa Insurance Company Japan typhoon $100m
Nakama Re Ltd. (Series 2014-1) Zenkyoren Japan earthquake $300m
Sanders Re Ltd. (Series 2014-2) Allstate Florida named storms, earthquakes, severe thunderstorms $200m
Sanders Re Ltd. (Series 2014-1) Allstate U.S. named storms (excluding Florida), U.S. earthquake (CA, NY, WA) $750m
Armor Re Ltd. (Series 2014-1) American Coastal Insurance Company U.S. named storms (Florida only initially) $200m
Everglades Re Ltd. (Series 2014-1) Citizens Property Insurance Florida hurricanes $1,500m
Citrus Re Ltd. (Series 2014-2) Heritage Property and Casualty Insurance Co. U.S. earthquake (New Madrid region) $50m
Kilimanjaro Re Ltd. (Series 2014-1) Everest Reinsurance Company U.S. named storms, U.S. earthquakes $450m
Lion I Re Ltd. Assicurazioni Generali S.p.A. European windstorm $262m
Citrus Re Ltd. (Series 2014-1) Heritage Property and Casualty Insurance Co. U.S. named storms (Florida only initially) $150m
Merna Re V Ltd. State Farm U.S. earthquake (New Madrid region) $300m
Riverfront Re Ltd. Great American Insurance Group U.S. and Canada named storms, earthquakes, severe thunderstorms and winter storms $95m
Kizuna Re II Ltd. Tokio Marine & Nichido Fire Japan earthquake $245m
Gator Re Ltd. American Strategic Insurance Group U.S. named storms and severe thunderstorm $200m
Dodeka II Unknown U.S. wind and earthquake risks $25m
Queen Street IX Re Ltd. Munich Re U.S. hurricane, Australia cyclone $100m
Omamori Tokio Millennium Re U.S. earthquakes and named storms (2nd event) $25m
Dodeka I Unknown U.S. multi peril $22m
Kane SAC Series 2014-1 Unknown Private catastrophe bond notes $50m
Eden Re Ltd. Munich Re Collateralized reinsurance sidecar notes $63m
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
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
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
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

Total catastrophe bonds and insurance-linked securities: $12.959 billion

Blue Capital Global Reinsurance Fund Limited $187m
CATCo Reinsurance Opportunities Fund – Ordinary Shares $344m

Total reinsurance-linked investment fund share classes (approximate): $531m

Total insurance-linked listings on the BSX currently: $13.490 billion

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