The Bermuda Stock Exchange has been trying to increase the number of catastrophe bond entities which are listed on it for a while now. In recent years the Cayman Islands has been seen as the domicile of choice for any special purpose vehicle which was designed to issue insurance-linked securities but now it seems that the BSX’s campaign is paying off.
During 2010 there have been a number of entities listed on the BSX for ILS purposes and that has helped to raise the value listed to over $1B for the first time. Changes in regulations have helped as it is now more straightforward to list in Bermuda, the BSX expects this will help attract further cat bond listings to the island later this year.
President and Chief Executive Officer, Greg Wojciechowski said; “We would like Bermuda to become the platform of choice for listing of cat bonds. It makes sense, the sponsors are here, the special purpose insurers are set up here and the Exchange is here.” He also stated: “The BSX is a fully electronic and internationally recognized stock exchange and we operate as an equity and fixed income market. This is an asset class that has very little correlation with broader capital market risks and we would be remiss not to support it.”
The full press release from the BSX is available here.