Isosceles Insurance Ltd. (Series 2021-B1)

This is the third private catastrophe bond transaction we’ve listed from the Isosceles Insurance Ltd. private insurance-linked securities (ILS) platform operated by Marsh McLennan and reinsurance broker Guy Carpenter.

Isosceles Insurance Ltd. has issued a single $25 million tranche of Series 2021-B1 insurance-linked notes, which have been privately placed with qualified investors.

As with all private ILS deals, the details are scarce so we’ve had to make some assumptions in order to include this Isosceles private ILS transaction it in our catastrophe bond Deal Directory.

The $25 million of Series 2021-B1 notes issued by Isosceles Insurance Ltd. are structured as discounted zero coupon participating notes, typical of a private ILS transformation of a collateralised reinsurance or retrocession contract, converting it into something more liquid and investable as a security, usually for a cat bond specific fund or strategy.

The notes have a maturity date of March 30th 2022, which could suggest the underlying contract runs for about a year and that it might have been issued as part of an April renewal program placement.

As with all private ILS or cat bonds, we assume this issuance features property catastrophe reinsurance or retrocession risks, which have been transformed so as to provide an ILS fund or ILS investor with an asset that meets a catastrophe bond mandate, offering greater options in terms of secondary liquidity.