Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

$290m Eden Re II collateralized sidecar launches, likely Munich Re


$290m of participating notes from an issuing vehicle named Eden Re II Ltd. have been listed in Bermuda today, which we assume to be a renewal and upsizing of the world’s largest reinsurance firm Munich Re’s fully-collateralized reinsurance sidecar.

In total $290m of  Series 2015-1 participating notes in Eden Re II Ltd., a Bermuda insurance vehicles, have been listed on the Bermuda Stock Exchange (BSX) today.

The listing is split into $242m of participating notes without voting rights and another $42m of participating notes which do have voting rights, giving a total of $290m of notes listed by Eden Re II Ltd. on behalf of its segregated account 2015-1. All of the notes have a due date of April 19th 2018.

Munich Re launched the $63m Eden Re Ltd. collateralized reinsurance sidecar almost a year ago, as the reinsurer sought to establish a platform through which it could share some of its reinsurance underwriting business with third-party investors.

Munich Re has since said that it intended to leverage alternative reinsurance capital and third-party investors as a way to pursue continued growth, likely aiming to share business that meets ILS investors risk appetite through another sidecar vehicle.

Given the naming of the vehicle, we feel it’s safe to assume that Eden Re II Ltd. is another sidecar vehicle from Munich Re, but with a much increased $290m of capacity in it.

It’s possible that the participating notes with voting rights could reflect a proportion of the vehicle that is seeded with Munich Re’s own capital, thus keeping its share of the business and demonstrating to investors its own capital is at risk in the business it seeks to share, but we cannot confirm that at this time.

The listing of the $290m of participating notes issued by Eden Re II’s Series 2015-1 segregated account has been made under the Bermuda Stock Exchange’s (BSX) Section V Insurance Related Securities classification.

We’ll update you should any confirmation come from Munich Re regarding Eden Re II Ltd.

For more details on reinsurance sidecar investments view our list of collateralized reinsurance sidecars.

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