Eclipse Re Ltd. (Series 2025-8A)

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

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

Eclipse Re makes issuance of private catastrophe bonds, or cat bond lites possible, enabling sponsors to access the capital markets efficiently by providing risk transformation functionality, or it can be used by an ILS fund manager or investor.

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

Eclipse Re also provides 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 would not be cost-effective.

This latest private cat bond issuance from the platform saw Eclipse Re Ltd. issuing a $100 million tranche of Series 2025-8A notes, that we presume will cover some type of property catastrophe reinsurance or retrocessional perils for an unknown cedent.

The $100 million of Series 2025-8A notes have been issued on behalf of Eclipse Re’s Segregated Account EC0077 and the notes have a final maturity date of September 30th 2026.

Given the maturity date, it’s assumed that the $100 million of Series 2025-8A notes are a securitization of a one year or less duration reinsurance or retrocession arrangement by Eclipse Re.

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

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 they typically feature a property catastrophe related risk of some kind.

The proceeds from the sale of the $100 million of private cat bond notes from this 2025-8A series of private ILS notes issued by Eclipse Re are expected to have been 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.