Mangrove Risk Solutions Bermuda Ltd. (Series 2025-C1)

This private catastrophe bond is the seventh issuance of a cat bond lite that we’ve seen come out of the Mangrove Risk Solutions Bermuda Ltd. platform that is operated by Marsh McLennan and reinsurance broker Guy Carpenter.

It is the third private cat bond from the Mangrove platform of 2025 so far, lifting deal volume from the platform to $131.18 million year-to-date.

This latest series of privately placed insurance-linked securities (ILS) issued by Mangrove Risk Solutions Bermuda Ltd. is a Series 2025-C1 deal.

Mangrove Risk Solutions Bermuda Ltd. has issued just under $22.43 million of discounted zero-coupon participating notes, on behalf of one of its segregated accounts named 2025-C1.

The notes have been sold in a private placement to qualified investors, while the collateral raised is expected to underpin a reinsurance or retrocession agreement that the segregated cell and trust are subject to.

The $22.43 million of Series 2025-C1 private cat bond notes Mangrove Risk Solutions has issued are due for maturity on June 12th 2026, we understand.

The maturity date suggests this could be a reinsurance or retrocession deal from the mid-year renewals that has been transformed and securitized, or a freshly arranged reinsurance or retro deal with a term of just less than one year.

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

Private ILS or cat bond lite arrangements usually fit into one of a number of use-cases. Either as a straight collateralised reinsurance or retro cover for a carrier, that has been transformed and securitised, to be assumed by a single ILS fund or investor, or for a small group of funds/investors, or, ILS fund-to-fund transactions (hedging), or the transformation to securities of a specific risk transfer arrangement, such as an industry-loss warranty (ILW).

Guy Carpenter’s specialist capital markets and investment banking unit GC Securities is presumed to have structured the transaction and acted as a bookrunner or placement firm for this latest Mangrove Risk Solutions private ILS transaction.

Marsh Management Services will have acted as the insurance manager for the structure itself, as has been seen with all the previous issuances under the Mangrove structure and its former Isosceles name.

Being a Bermuda insurance-linked securities (ILS) structure, these private cat bond notes have been listed on the Bermuda Stock Exchange (BSX), enhancing their liquidity, while Appleby has acted as their listing sponsor.