A new private catastrophe bond, or cat bond lite, issuance has been completed and listed in Bermuda using the Artex SAC Limited Note Program II, in the form of $50.227 million of Artex SAC Limited – Series DX Notes.
As ever, details are scant on this latest private cat bond from the Artex Risk Solutions issuance platform.
Typically these deals involve either an established insurance-linked securities (ILS) fund manager, or sometimes an individual or club group of investors, seeking to transform a collateralised reinsurance contract or industry loss warranty (ILW) into a securitised cat bond format to meet investment fund mandates.
This DX transaction consisting of $50.227 million of notes have been issued by Artex SAC Limited using the ILS Note Program II and a DX Notes segregated account. The notes have been placed with qualified investors and listed on the Bermuda Stock Exchange (BSX) as insurance related securities, with a due date of April 6th 2018.
Typically these private cat bond transactions involve peak property catastrophe reinsurance perils (often U.S.) and feature triggers based either on an industry loss or an indemnity structure basis.
This is the second of these cat bond lite style deals that we’ve recorded issued through the Artex SAC platform since Artex Risk Solutions acquired insurance and ILS management group Kane in 2016 and renamed its private cat bond and ILS issuance platform, following on from a near $9 million Artex SAC Limited – Series CX Notes transaction.
Platforms such as Artex SAC Limited, and its associated note programs, enable investors and ILS fund managers to access reinsurance risks in securitised, cat bond form more cheaply and from smaller transactions than the main 144A cat bond market would allow.