Eclipse Re Ltd. (Series 2023-2A)

This is the second 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 located special purpose insurer (SPI) and segregated account company, which is managed by insurance-linked securities (ILS) market facilitator and service provider Artex Capital Solutions.

Eclipse Re is often used as a risk transformer vehicle for ILS fund managers and investors, converting collateralized reinsurance arrangements into something more like a catastrophe bond, so fully securitized and with secondary transferability features.

This new issuance most 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 $10 million of Series 2023-02A notes, on behalf of its Segregated Account EC52, with these notes having a final maturity date, of January 1st 2024.

Because of this, it’s reasonable to assume these notes could represent a single US wind season reinsurance or retrocession cover.

The proceeds from the sale of the roughly $10 million of Series 2023-02A 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.