Mangrove Risk Solutions Bermuda Ltd. (Series 2024-D)

These Series 2024-D notes represent a new private insurance-linked security (ILS), or private catastrophe bond issuance from the Mangrove Risk Solutions Bermuda Ltd. platform operated by Marsh McLennan and reinsurance broker Guy Carpenter.

This is the first issuance from Mangrove Risk Solutions that we’ve seen, having previously been named Isosceles Insurance Ltd. under which name it was responsible for a number of private cat bond deals.

Isosceles Re, as it was know, was renamed to Mangrove Risk Solutions Bermuda Ltd. in 2024, with this now the first issuance of private cat bond notes since that renaming.

This latest private cat bond or ILS issued by Mangrove Risk Solutions Bermuda Ltd. is a Series 2024-D transaction.

Mangrove Risk Solutions Bermuda Ltd. has issued $20 million of discounted zero-coupon notes, on behalf of a segregated account 2024-D, with the notes sold to provide an investment for the collateral that underpins a reinsurance or retrocession agreement.

The $20 million of notes issued are due for maturity as of May 10th 2025, suggesting this transaction provides reinsurance or retrocessional coverage for a term of under one-year. It could be a mid-year reinsurance renewal deal that has been transformed and securitized, we suspect.

The $20 million of 2024-D notes are structured as discounted zero coupon participating notes, which is typical of many private ILS transformations of collateralised reinsurance or retrocession contracts, converting them into a more liquid and investable security, usually for a cat bond specific fund or ILS strategy.

As with every private ILS or cat bond deal, until we learn more details we assume these cover property catastrophe reinsurance or retrocession risks.