Artex Axcell Re – Harrogate notes

An Artex Risk Solutions managed entity in Bermuda has issued a new private catastrophe bond arrangement, with $20 million of Harrogate notes brought to market and sold to qualified investors.

This new private cat bond transaction, or cat bond lite, has been issued by the Artex Axcell Re (Bermuda) Limited transformer and cell facility, which is operated by Artex Risk Solutions.

This structure has been regularly used over the years for transacting or transforming reinsurance related risks, including through the issuance of private insurance-linked securities (ILS) notes, ranging from collateralized reinsurance to private cat bonds with the help of facilitator Artex.

This new issuance sees Artex Axcell Re (Bermuda) Limited, under its ILS Note Program II, having issued $20 million in Harrogate notes on behalf of a segregated account identified as PI0056, we understand.

These new private cat bond notes have a maturity date of December 15th 2025, which suggests this could be a hurricane season reinsurance or retrocessional cover, or even a transformed and securitized industry-loss warranty (ILW) hedge.

The $20 million of PI0056 Harrogate private cat bond notes issued by Artex Axcell Re have been privately placed with qualified institutional investors and are now listed on the Bermuda Stock Exchange (BSX).

As with every private ILS or cat bond deal that we uncover, until we learn more details we assume these cover a property catastrophe reinsurance or retrocession risk. But, as said, given the term to maturity in December this year, it’s highly possible they represent a coverage put in place for the Atlantic hurricane season.