Artex Axcell Re – Jedburgh notes

A Bermuda entity managed by Artex Risk Solutions has issued a new private catastrophe bond arrangement, with $15 million of Jedburgh 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 owned and operated by Artex Risk Solutions.

This structure has been used numerous times 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 assistance of facilitator Artex.

This new private cat bond or ILS issuance sees Artex Axcell Re (Bermuda) Limited, under its ILS Note Program II, having issued $15 million in Jedburgh notes on behalf of a segregated account identified as PI0058, we understand.

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

The $15 million of PI0058 Jedburgh private cat bond notes issued through Artex Axcell Re have been privately placed with qualified institutional investors and are now listed on the Bermuda Stock Exchange (BSX).

As with all of the private ILS or cat bond deals that we uncover, until we understand more we assume these feature a risk transfer of property catastrophe reinsurance or retrocessional risk. But, as said, given the term to maturity in December this year, it’s very likely they represent a protection put in place for the Atlantic hurricane season.