Eclipse Re Ltd. (Series 2025-5A)

This is the fourth privately placed series of catastrophe bond notes of 2025 that we have seen from the Eclipse Re Ltd. private insurance-linked securities (ILS) and collateralized reinsurance transformer and issuance platform.

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

Eclipse Re facilitates the issuance of private catastrophe bonds, either to help sponsors access the capital markets efficiently on by providing a function as a risk transformation structure, operating on behalf of ILS fund managers and investors.

Eclipse Re transforms collateralized reinsurance or retrocession arrangements into investable ILS notes, with features that are more similar to a catastrophe bond. So these are fully-securitized and with secondary transferability as an option.

Eclipse Re is also an efficient and lower-cost cat bond issuance platform, for insurers, reinsurers or other sponsors with smaller deal sizes where economies of scale may not warrant a full Rule 144A issuance.

In the case of this latest private cat bond issuance from the platform, Eclipse Re Ltd. has issued a $14.7 million tranche of Series 2025-5A notes, which we expect cover some type of property catastrophe reinsurance or retrocessional perils for an unknown cedent.

The $14.7 million of Series 2025-5A notes have been issued on behalf of Eclipse Re’s Segregated Account EC0074 and the notes have a final maturity date of May 31st 2026.

Given the maturity date, we anticipate the $14.7 million of Series 2025-5A notes represent the securitization of a one year or less duration reinsurance or retrocession arrangement by Eclipse Re, likely a transaction from the mid-year renewal season.

The notes issued by Eclipse Re have been privately placed with qualified investors and listed on the Bermuda Stock Exchange (BSX).

As is typical, we assume the issuance features a reinsurance or retrocession arrangement that has been transformed using the Eclipse Re structure, to create and issue a series of investable, securitized catastrophe bond notes, normally for an ILS fund manager or investor portfolio.

It’s not clear to us what the underlying trigger(s) or peril(s) are for private catastrophe bonds like this, but we suspect they will represent some kind of property catastrophe related risk.

The proceeds from the sale of the $14.7 million of private cat bond notes from this 2025-5A series of private ILS notes issued by Eclipse Re will collateralize a related reinsurance or retrocession contract, with funds held in a trust, enabling the risk transfer and the creation of investable catastrophe-linked securities.