Artex Axcell Re (Series FE0005)

A new private catastrophe bond transaction has been issued by Artex Risk Solutions entity the Artex Axcell Re (Bermuda) Limited structure, with this potentially being a renewal of a recently matured deal.

Artex Axcell Re has issued 600 million JPY, so roughly US $3.8 million, of Series FE0005 notes.

The size and the denomination in Japanese Yen suggest this new cat bond lite likely covers perils from that country and that it could be a renewal of a recently matured deal.

Artex Axcell Re (Bermuda) Limited is a transformer and segregated cell facility that is operated by Artex Risk Solutions.

The structure has been regularly used over the years for transacting and issuance of private insurance-linked securities (ILS) notes, from collateralized reinsurance to private catastrophe bonds with the help of facilitator Artex.

Artex Axcell Re (Bermuda) Limited, under its ILS Note Program II, has issued JPY 600 million (roughly US $3.8 million at this time) in Series FE0005 notes, on behalf of a segregated account of the same name.

These new private cat bond notes have a due date of April 28th 2027, so their coverage runs into that month, which is relatively closely aligned with the majority of reinsurance arrangements for cedents in Japan.

There have been previous FE0001 and FE0002 cat bond note issuances that also had due dates of April 28th 2025 and 2026 consecutively and each were 600 million JPY in size, so we feel there’s a strong chance this new FE0005 private cat bond is another renewal of those earlier and now matured private cat bond arrangements for a Japanese sponsor.

Given the Japanese Yen denomination of the private cat bond notes, as usual we make the assumption that they will cover a Japanese peril, likely property catastrophe risk in nature, for an unknown Japanese sponsor or entity active there.

The JPY 600 million of Series FE0005 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, in this case in Japan.