Eclipse Re Ltd. (Series 2025-6A)

This is the seventh issuance of privately placed catastrophe bond notes in 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 based special purpose insurer (SPI) and segregated account platform, which is owned and managed by insurance-linked securities (ILS) market facilitator and service provider Artex Capital Solutions.

Eclipse Re makes possible the issuance of private catastrophe bonds, either to help sponsors access the capital markets efficiently by providing risk transformation functionality, or through use by an ILS fund managers or investor.

Eclipse Re can provide the transformation of a collateralized reinsurance or retrocession contract or participation into investable insurance-linked notes, with features that are akin to a catastrophe bond. So these are fully-securitized and with secondary transferability as an option.

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

With this latest private cat bond issuance from the platform to come to light, Eclipse Re Ltd. has issued a $25 million tranche of Series 2025-6A notes, that we expect will cover some type of property catastrophe reinsurance or retrocessional perils for an unknown cedent.

The $25 million of Series 2025-6A notes have been issued on behalf of Eclipse Re’s Segregated Account EC0075 and the notes have a final maturity date of May 31st 2026.

Given the maturity date, it’s assumed that the $25 million of Series 2025-6A notes are a securitization of a one year or less duration reinsurance or retrocession arrangement by Eclipse Re, likely a transaction from around the mid-year renewal signings.

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

As we always do, we assume this 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 cat bond notes, normally for an ILS fund manager or investor’s portfolio.

Details are not available as to what the underlying trigger(s) or peril(s) are for private catastrophe bonds issuances such as this, but we suspect they will feature a property catastrophe related risk of some kind.

The proceeds from the sale of the $25 million of private cat bond notes from this 2025-6A series of private ILS notes issued by Eclipse Re are likely used to collateralize a related reinsurance or retrocession contract, with funds held in a trust, enabling the risk transfer and the securitization of the risk into investable private catastrophe bond notes.