Eclipse Re Ltd. (Series 2024-7A)

This is the fourth 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 $25 million tranche of Series 2024-7A, which we assume will cover property catastrophe risks for an unknown cedent.

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

Eclipse Re is normally acting as a risk transformation vehicle, working on behalf of 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’ve learned that Eclipse Re Ltd. has issued $25 million of Series 2024-7A notes, on behalf of Segregated Account EC66, with these notes having a final maturity date of March 31st 2025.

The $25 million of Series 2024-7A notes issued by Eclipse Re have been privately placed with qualified investors.

As ever, we make the assumption that 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.

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

The proceeds from the sale of this $25 million of Series 2024-7A private cat bond notes issued by Eclipse Re will have been used to collateralize 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 March 2025, it is likely this deal represents the securitization of a one year or less duration reinsurance or retrocession arrangement.