Resilience Re 1711A private cat bond has maturity extended six months

by Artemis on February 2, 2018

The $63 million Resilience Re Ltd. (Series 1711A) private catastrophe bond transaction has had its maturity extended by six months, which is likely to allow for loss development from 2017 catastrophe events so that the sponsor can establish whether it is able to claim on the reinsurance the notes provide it with.

The $63 million of zero-coupon private catastrophe bond notes issued through the Resilience Re 1711A transaction were first issued in early 2017, through the Willis Towers Watson Securities cat bond platform.

The transaction provides an unknown sponsor with a one year source of fully collateralized property catastrophe reinsurance, with the transaction issued by WTWS platform Resilience Re Ltd. and marketed to a select club of ILS funds and investors.

The $63 million of Series 1711A notes issued by Resilience Re were originally slated for maturity as of January 8th 2018.

But according to a stock exchange filing, the maturity on these notes has been extended by six months, with it now scheduled for July 8th 2018.

It suggests that the Resilience Re 1711A private cat bond is exposed to potential losses from the 2017 major catastrophes and hurricanes, leading the sponsor to elect to extend the maturity of the notes to allow for loss development and to identify whether it can make a claim on the notes principal under the terms of the underlying reinsurance or retrocession arrangement.

Of course, we can’t confirm whether any losses will be faced by investors in this Resilience Re 1711A deal, but the most typical reason for a catastrophe bond to have its maturity extended in this way is to allow for loss development and clarity to arise over any payouts investors in the notes would have to make.

We’ll update you should we hear anymore on the fate of this Resilience Re Ltd. (Series 1711A) private cat bond.

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