Eclipse Re Ltd. (Series 2023-7A)

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

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

Eclipse Re usually plays the role of a risk transformer vehicle for ILS fund managers and investors, converting collateralized reinsurance or retrocession arrangements into something more like a catastrophe bond, so fully securitized and with secondary transferability features.

This latest issuance is assumed to represent a reinsurance or retrocession transaction that has been transformed using the Eclipse Re vehicle, in order to create and issue a series of investable, securitized catastrophe bond notes, typically for an ILS fund manager or investor portfolio.

Eclipse Re Ltd. has issued just under $15 million of Series 2023-07A notes ($14,998,770), on behalf of its Segregated Account EC57, with these notes having a final maturity date, of June 1st 2024.

We don’t know what the trigger or peril featured in this private catastrophe bond deal is, but assume they will be some kind of property catastrophe reinsurance or retrocession risk.

The proceeds from the sale of the nearly $15 million of Series 2023-07A 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, enabling the risk transfer and the creation of investable catastrophe-linked securities.