Isosceles Insurance Ltd. (Series 2021-H)

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

In this latest issuance to come to light, Isosceles Insurance Ltd. has issued one new tranche of privately placed insurance-linked notes, or private cat bonds, totalling $21.5 million of risk capital issued.

As with every private ILS or cat bond deal we encounter, details are limited, so we’ve had to make some assumptions.

The $21.5 million of Series 2021-H notes issued by Isosceles Insurance Ltd. have been 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 ILS strategy.

The $21.5 million of Series 2021-H notes have a maturity date of August 5th 2022, suggesting they may be a reinsurance or retrocession transaction entered into earlier this summer and that has taken longer to come to light, or that they could represent a cedant buying back-up cover after some of the recent catastrophe loss events around the world.

As with every private ILS or cat bond deal, we assume this covers property catastrophe reinsurance or retrocession risks.

We learned that this private cat bond transaction covers a portfolio of US motor insurance risks, protecting a cedant against rising loss ratios in its motor book, likely third-party motor liability related, which also suggests it has an indemnity trigger.