Isosceles Insurance Ltd. (Series 2022-H)

This Series 2022-H transaction is a new private insurance-linked security (ILS), or private catastrophe bond issuance from the Isosceles Insurance Ltd. platform operated by Marsh McLennan and reinsurance broker Guy Carpenter.

It’s the fourth Isosceles Insurance (often called Isosceles Re) private cat bond to come to light in 2022, but with the previous three being Series 2022 A through C, and this being issued on behalf of a segregated account 2022-H, it seems likely there are others that we do not know about at this stage.

The $18.48 million of discounted zero-coupon notes issued by Isosceles Insurance Ltd. are due for maturity as of February 21st 2024, suggesting this transaction provides reinsurance or retrocessional coverage for at least a one year term.

As with every private ILS or cat bond deal we encounter and source some information about, details are limited, so we’ve had to make a number of assumptions.

The privately placed insurance-linked notes, or private cat bonds have been sold to investors. The notes will have been sold to provide collateral to underpin a reinsurance or retrocession agreement.

The notes have been structured as discounted zero coupon participating notes, which is 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.

We assume these notes provide cover for property catastrophe risks.