Eclipse Re Ltd. (Series 2023-1A)

This is the first issuance of privately placed insurance-linked securities (ILS) notes from private catastrophe bond transformer and issuance platform Eclipse Re Ltd. of 2023, that we have listed in our extensive Deal Directory.

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

Eclipse Re is often used as a transformer vehicle for ILS fund managers, converting collateralised reinsurance arrangements into something more akin to a catastrophe bond, securitized and with secondary transferability features.

This issuance likely represents a reinsurance or retrocession transaction that has been transformed using the Eclipse Re structure in order to create and issue a series of investable, securitized catastrophe bond notes, normally for an ILS fund manager or investors portfolio.

Eclipse Re Ltd. has issued $8.73 million of Series 2023-01A notes, on behalf of its Segregated Account EC51, with these notes having a final maturity date, of January 1st 2024.

As a result, it’s possible these notes could represent a single US wind season reinsurance or retro cover.

The proceeds from the sale of the $8.73 million of Series 2023-01A private cat bond notes issued by Eclipse Re will have been used as collateral to underpin a related reinsurance or retrocession contract, held in a trust.