Eclipse Re Ltd. (Series 2022-2A)

This is the second privately placed insurance-linked securities (ILS) transaction of 2022 that we have listed in our extensive Deal Directory from private catastrophe bond transformer and issuance platform Eclipse Re Ltd.

Eclipse Re Ltd. is a Bermuda domiciled special purpose insurer (SPI) and segregated account company that is managed by insurance-linked securities (ILS) market facilitator and service provider Artex.

This second issuance from Eclipse Re of 2022 is a relatively small transaction, and has a term that suggests this is likely a US wind protection, as it runs through the Atlantic hurricane season.

Eclipse Re Ltd. has issued $8.73 million of Series 2022-02A notes, with the notes having a final maturity date, of January 1st 2023.

As ever, we assume this latest Eclipse Re deal features property catastrophe risk-linked notes, providing an unnamed protection buyer, or ILS fund, with reinsurance or retrocession protection just to the end of 2022.

Because of this, there’s a strong chance it’s a protection running for the US wind season, although it could also be a carrier needing a slice of reinsurance from the cat bond market to run up to the January renewals.

The proceeds from the sale of the $8.73 million of private catastrophe bond notes will have been used as collateral to underpin a related reinsurance or retrocession contract, held in a trust.

The $8.73 million of private cat bond notes have been placed with qualified institutional investors and were admitted to the Bermuda Stock Exchange (BSX) as insurance-related securities for a listing, with Artex also acting as the listing sponsor through its Artex Corporate Services (Bermuda) Ltd. unit.