Continuing the trend of 2016 and the first-half of 2017, the total amount of catastrophe bond and insurance-linked securities (ILS) listings on the Bermuda Stock Exchange (BSX) reached a new high of $25.99 billion at year-end 2017, growth of roughly 23% year-on-year.
A record 103 new insurance-linked listings of catastrophe bonds, ILS, reinsurance sidecar notes and insurance linked investment funds were recorded on the BSX in 2017, with a combined value of $11.54 billion.
In terms of the number of listings, the 103 recorded in 2017 represents growth of approximately 69% from the 61 new ILS listings listed on the BSX during 2016, while the nominal value of the new listings increased by around 87%, to $11.54 billion from $6.157 billion.
Helping to drive the BSX’s listings of ILS and reinsurance linked investments to a new high was the record levels of catastrophe bond issuance seen in 2017, with roughly $12.6 billion of new risk capital issued and recorded by Artemis.
BSX President and Chief Executive Officer (CEO), Greg Wojciechowski, commented; “In 2017 the BSX built upon its position as the listing venue of choice for global ILS vehicles. In addition, the significant increase in the number of international debt issuers illustrates that the market is clearly aware of the benefits of listing securities on the BSX and this is creating new opportunities for the Exchange and its listing sponsor community.”
As a result of yet another record year for ILS listings on the BSX, the total number of listed ILS securities totalled 227 at year-end 2017, with a total nominal value of $25.99 billion. This is compared to a total 175 ILS listings on the exchange at the end of 2016, with a nominal value of $21.2 billion, and the 218 recorded for the first-half of 2017, which had a combined value of $24.5 billion.
“The accomplishments of the BSX to date and in particular this year’s results, are directly attributable to the hard work of a small, dedicated team of world class stock exchange professionals that manage and operate the Exchange on a daily basis. The team clearly understands the important role the BSX platform plays in the development of the Island’s domestic capital market and in particular its regulatory role which ensures investor and market protection. This and how all the pieces collectively contribute to the health and development of Bermuda’s economy.
“Furthermore, the team is committed to ensuring that Exchange remains a leader amongst its peers internationally by providing global capital market access and solid support for domestic market users,” continued Wojciechowski.
With the ILS market continuing to expand its remit, Bermuda is clearly benefitting from its ability and position as a global ILS domicile, attracting new vehicles and capacity. However, with other jurisdictions looking to eat into Bermuda’s share of the ILS pie, it will be interesting to see if the strong growth trend witnessed in 2017 persists in the months and years ahead.
To conclude, Wojciechowski said; “2017 was another solid year for the Exchange as we continued to expand our global reach and develop our domestic market. The focus in 2018 will be continued expansion of our international outreach with a view to creating new strategic partnerships that will enhance the Exchange’s global reputation with the ultimate goal of deriving a sound return on investment for our shareholders. Domestically, we will continue to work with our members in a determined effort to support the domestic capital market by expanding our ‘Own Your Share of Bermuda’ investor education programme, initiating new and creative ways to expand and diversify share ownership and increase trade activity.”
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