Bermuda Stock Exchange cat bond & ILS listings near $17.5 billion

by Artemis on July 7, 2015

Following an impressive 2014 the Bermuda Stock Exchange (BSX) has passed yet another milestone, revealing that a significant $17.462 billion catastrophe bonds, ILS, sidecars and reinsurance investment funds are now listed on the Exchange.

The growth of insurance-linked listings on the BSX has been impressive over the years, and the almost $17.5 billion of listings reflect the growing acceptance of insurance-linked securities (ILS) structures, including catastrophe bonds, investment funds, sidecars and collateralized reinsurance.

Artemis has tracked the development and growth of the ILS and cat bond listings at the BSX since it first surpassed the $1 billion mark, roughly five years ago. By the end of Q1 2014 BSX ILS and cat bond listings had moved beyond the $10 billion milestone for the first time, and had added roughly $7.4 billion of listings in the prior 15 months alone.

The strong growth of ILS listing on the BSX continued apace. As of 31st December 2014 the total listings at the exchange amounted to $15.912 billion, and despite a large volume of deals maturing during the first two quarters of 2015, strong cat bond issuance during Q2 has now helped the BSX surpass the $17 billion mark.

President and Chief Executive Officer (CEO) at the BSX, Greg Wojciechowski commented; “ILS is an exciting, developing asset class with a solid future ahead. The BSX is delighted to have been able to work with and support a group of dedicated professionals locally and abroad in furthering the development of this asset class. We are honoured by the support the global ILS industry has shown the BSX which is a direct driver of the results reported.”

With fewer deals scheduled to mature for the remainder of this year, but investor and sponsor appetite looking set to continue the trend witnessed in the first-half of 2015, we expect this figure to grow further, perhaps nearing, or even exceeding the $20 billion landmark.

Of the $17.462 billion of insurance and reinsurance linked listings at the BSX at the end of June 2015, roughly $16.562 billion came from catastrophe bonds, highlighting the supremacy the exchange has within the catastrophe bond space.

To put that figure into context, Artemis currently sees the outstanding catastrophe bond and life related ILS market as $24.681 billion in size. With the BSX having $16.562 billion of cat bonds now listed on the Exchange, it now accounts for a huge 67% of the outstanding market.

A further $535 million comes from two insurance-linked funds listed on the exchange. One of which is managed by Blue Capital Management and equates to $213 million, with the other $322 million being contributed by CATCo, through its Reinsurance Opportunities Fund.

The remaining $365 million comes from the exchange’s listed collateralized reinsurance sidecar notes, all of which are currently sponsored by reinsurance giant Munich Re. The transactions issued under the reinsurer’s sidecar series Eden Re I and Eden Re II, consist of three tranches of notes, and have shrunk by $63 million from the end of 2014.

Since the beginning of 2015 the BSX has continued its impressive growth rate of ILS, catastrophe bonds and reinsurance-linked listings, with the number of individual securities listed on the exchange now totalling 138. This represents a 14.5% increase in the number of listed insurance-linked securities in the last six-months alone, and a volume increase of 8.9%, or $1.55 billion.

Commenting on the outlook for the BSX, Wojciechowski said; “The BSX looks forward to its continued work with this industry segment to help further develop the ILS asset class and to fortify Bermuda’s position as the centre of excellence for the creation, support and listing of ILS vehicles.”

Below is a useful list of the entire $17.462 billion of the insurance and reinsurance-linked listings on the Bermuda Stock Exchange, broken down into reinsurance-linked investment funds, reinsurance sidecars and catastrophe bonds.

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

Issuer Cedent Risks / Perils covered Size
Hotaru Unknown ? $47.6m
Kane SAC Limited – Tralee Unknown ? $17.6m
Dodeka VII Unknown U.S. property catastrophe risks $18.899m
Panda Re Ltd. (Series 2015-1) China Property and Casualty Reinsurance Company (China Re) China earthquake $50m
Azzurro Re I Limited UnipolSai Assicurazioni S.p.A. European earthquake (covers portfolio in Italy) $223.176m
Dodeka VI Unknown U.S. property catastrophe risks $19.078m
Compass Re II Ltd. (Series 2015-1) AIG U.S. wind $300m
Dodeka V Unknown U.S. property catastrophe risks $18.88m
Alamo Re Ltd. (Series 2015-1) Hannover Rück SE, on behalf of reinsured Texas Windstorm Insurance Association (TWIA) Texas named storms $700m
Everglades Re II Ltd. (Series 2015-1) Citizens Property Insurance Florida named storms $300m
Cranberry Re Ltd. (Series 2015-1) Massachusetts Property Insurance Underwriting Association / Hannover Ruck SE Massachusetts named storm, severe thunderstorm & winter storm $300m
LI Re (Series 2015-1) Unknown Property catastrophe risks $3.75m
Pelican III Re Ltd. (Series 2015-1) Louisiana Citizens Louisiana named storm $100m
Citrus Re Ltd. (Series 2015-1) Heritage Property and Casualty Insurance Co. U.S. named storms (Florida only initially) $277.5m
Merna Re Ltd. (Series 2015-1) State Farm U.S. earthquake (New Madrid region) $300m
Queen Street X Re Limited (2015) Munich Re U.S. hurricane, Australia cyclone $100m
Manatee Re Ltd. (Series 2015-1) Safepoint Insurance Company U.S. named storm (Florida initially) $100m
Kizuna Re II Ltd. (Series 2015-1) Tokio Marine & Nichido Fire Insurance Co. Ltd. Japan earthquake $290m
Kane SAC Limited (Series 2015-1) Unknown ? $50.2m
Galileo Re Ltd. (Series 2015-1) Catlin U.S. named storms, U.S. earthquake, Canada earthquake, European windstorm $300m
Dodeka I – 2015 Unknown U.S. property catastrophe risks $20.605m
Kane SAC Limited – Exeter Unknown U.S. property catastrophe risks $54.81m
Kane SAC Limited – Hereford Unknown U.S. property catastrophe risks $16.82m
Kane SAC Limited – Muirfield Unknown U.S. property catastrophe risks $26.82m
Kane SAC Limited – Troon Unknown U.S. property catastrophe risks $27.53m
LI Re (Series 2014-2) Unknown Property catastrophe risks $5m
Leine Re Unknown Property catastrophe risks $71m
Tramline Re II Ltd. (Series 2014-1) Amlin U.S. named storm, U.S. earthquake, European windstorm $200m
Nakama Re Ltd. (Series 2014-2) Zenkyoren Japan earthquake $375m
Tradewynd Re Ltd. (Series 2014-1) AIG U.S., Canada, Mexico, Caribbean, Gulf of Mexico, D.C. named storms. U.S., Canada, Mexico, Caribbean, D.C. earthquakes $500m
Ursa Re Ltd. (Series 2014-1) California Earthquake Authority California earthquake $400m
Kilimanjaro Re Ltd. (Series 2014-2) Everest Re U.S and Canada earthquake $500m
LI Re (Series 2014-1) Unknown Property catastrophe risks $10m
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
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
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
Kane SAC Series 2014-1 Unknown Private catastrophe bond notes $50m
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 $300m
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
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 IV Capital Ltd. Munich Re U.S hurricane, European windstorm $100m

Total catastrophe bonds and insurance-linked securities: $16.562 billion

Blue Capital Global Reinsurance Fund Limited $213m
CATCo Reinsurance Opportunities Fund – Ordinary Shares $322m

Total reinsurance-linked investment fund share classes (approximate): $535m

Eden Re I Ltd. Series 2015-1 Munich Re Collateralized reinsurance sidecar notes $75m
Eden Re II Ltd. Series 2015-1 Munich Re Collateralized reinsurance sidecar notes $290m

Total reinsurance sidecar notes: $365m

Total insurance-linked listings on the BSX currently: $17.462 billion

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