Eclipse Re Ltd. (Series 2024-1A)

This is the first issuance of privately placed insurance-linked securities (ILS) notes of 2024, from private catastrophe bond transformer and issuance platform Eclipse Re Ltd., that we have listed in our extensive Deal Directory.

Eclipse Re Ltd. has issued a $100 million tranche of Series 2024-1A, which are presumed to cover property catastrophe risks for an unknown cedent.

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

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

We assume this latest private cat bond issuance features 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 $100 million of Series 2024-1A notes, on behalf of Segregated Account EC61, with these notes having a final maturity date, of December 31st 2025.

The $100 million of Series 2024-1A notes issued by Eclipse Re have been privately placed with qualified investors.

We don’t know what the trigger or peril(s) underling 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 $100 million of Series 2024-1A private cat bond notes issued by Eclipse Re will be used as collateral to underpin the 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 December 2025, it is possible this deal represents the securitization of a two year reinsurance or retrocession arrangement.