Artex SAC Limited – Series CX Notes

A new private catastrophe bond issuance has completed and listed in Bermuda using the Artex SAC Limited Note Program. $8.947m of Artex SAC Limited – Series CX Notes were listed on the Bermuda Stock Exchange (BSX).

It’s the first private catastrophe bond, or cat bond lite deal, to be issued under the Artex SAC Limited name, since Artex Risk Solutions acquired Kane and renamed its private cat bond and ILS issuance platform in May.

This transaction consisting of $8.947m of notes have been issued by Artex SAC Limited using a Series CX Notes segregated account. The notes have been listed on the BSX as insurance related securities, and have a due date of 9th June 2017.

This could be a renewal of the Kane SAC Limited – Series Ax Notes which matured on the 10th June this year, so likely reflects a U.S. property catastrophe focused reinsurance contract.

The notes issued under the Series CX segregated account have been placed with qualified investors, as is typical of all catastrophe bond transactions.

Typically these deals involve peak catastrophic perils (often U.S.) and feature triggers based either on an industry loss or indemnity structure basis.

Platforms such as Artex SAC Limited and its associated note programs enable investors and ILS fund managers to access risk in securitised, cat bond form more cheaply and from smaller transactions than the main 144A cat bond market would allow.