Eclipse Re Ltd. (Series 2023-9A)

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

It is also the largest private cat bond issuance from Eclipse Re of 2023 so far, with just slightly under $100 million in notes issued.

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

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

This latest private cat bond issuance is presumed to represent a reinsurance or retrocession transaction that has been transformed utilising the Eclipse Re structure, 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 $100 million of Series 2023-09A notes ($99,999,975), on behalf of Segregated Account EC59, with these notes having a final maturity date, of September 30th 2025.

The notes have been privately placed with qualified investors.

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

The proceeds from the sale of the nearly $100 million of Series 2023-09A 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.

Given the maturity date of this private cat bond is for the end of September 2025, it is possible this deal represents the securitization of a two year reinsurance or retrocession arrangement.