The Bermuda Stock Exchange (BSX) has hit another milestone in terms of insurance-linked listings of catastrophe bonds, ILS and insurance linked investment funds on the exchange, hitting 100 listings amounting to over $13 billion.
Growing its insurance-linked listings has been a core component of the BSX’s success as a capital market, however it shouldn’t be forgotten that the exchange plays host to many large corporations outside of the reinsurance and ILS space from both Bermuda and all over the world.
The insurance-linked listings growth at the BSX reflects the attractive regulatory environment in Bermuda, which has positioned itself as a leading domicile for catastrophe bond and insurance-linked securities (ILS) business. The BSX has capitalised on this and become one of the drivers for choosing the island as a home for ILS deals.
The growth-rate of insurance-linked listings at the BSX has been impressive in the four years or so that we’ve been tracking them. We first wrote about the exchange’s growing cat bond work back in July 2010 when its listings had just broken the $1 billion mark for the first time. We then tracked it through $2 billion in September 2011, $3.5 billion in April 2012, over $5 billion by December 2012, $7.2 billion by May 2013, more than $9 billion by December 2013 and $10 billion by end of Q1 2014 and rapidly onto $12.4 billion by May 2014.
“The growth in ILS listings at the BSX is clearly linked to the market’s comfort with Bermuda as an ILS domicile, due to the depth and breadth of industry related expertise here given the many years that Bermuda has been a respected and significant force in the reinsurance industry,” commented BSX President and Chief Executive Officer Greg Wojciechowski.
The chart below shows just how impressive that growth has been, based on data points we have tracked over the years.
Hitting $13 billion and 100 listed ILS structures means that just over 14% of the BSX’s total listings are now ILS related, which is impressive. The rate of growth reflects the attraction of ILS both as risk transfer tool and as an investment asset class.
Mr. Wojciechowski explained; “To pass 100 ILS related listings and the $13 billion volume this year is a testament to the continued growth of ILS, both as a source of reinsurance protection and as an asset class. Bermuda and the BSX look forward to continuing to provide a trusted platform that can facilitate the next phase of ILS market growth.”
The total volume of catastrophe bond listings on the BSX has now reached $12.896 billion, which is more than half of the outstanding market at this time, an impressive share of the market. Another $531m is contributed by two insurance-linked funds which are listed on the BSX and $63m from a listed collateralized reinsurance sidecar, with the grand total currently sitting at $13.49 billion of ILS listings.
Here is a useful list of all the insurance and reinsurance-linked listings on the Bermuda Stock Exchange, broken down into catastrophe bonds and reinsurance-linked investment funds. The most recent transactions are listed first, along with links to more details on each transaction where available.
You can read about every catastrophe bond and ILS deal in the Artemis Deal Directory.
|Issuer||Cedent||Risks / Perils covered||Size|
|Golden State Re II Ltd. (Series 2014-1)||California State Compensation Insurance Fund||Workers compensation claims resulting from California earthquakes||$250m|
|Hoplon II Insurance Ltd.||MyLotto24||Lottery winning risk||$66m|
|Dodeka III||Unknown||U.S. multi-peril||$10m|
|Kane SAC Limited (Series 2014-2)||Unknown||U.S. hurricane||$7.32m|
|Alamo Re Ltd. (Series 2014-1)||Hannover Rück SE, on behalf of reinsured Texas Windstorm Insurance Association (TWIA)||Texas named storms||$400m|
|Dodeka IV||Unknown||Florida and Gulf Coast wind||$28m|
|Aozora Re Ltd. (Series 2014-1)||Sompo Japan and Nipponkoa Insurance Company||Japan typhoon||$100m|
|Nakama Re Ltd. (Series 2014-1)||Zenkyoren||Japan earthquake||$300m|
|Sanders Re Ltd. (Series 2014-2)||Allstate||Florida named storms, earthquakes, severe thunderstorms||$200m|
|Sanders Re Ltd. (Series 2014-1)||Allstate||U.S. named storms (excluding Florida), U.S. earthquake (CA, NY, WA)||$750m|
|Armor Re Ltd. (Series 2014-1)||American Coastal Insurance Company||U.S. named storms (Florida only initially)||$200m|
|Everglades Re Ltd. (Series 2014-1)||Citizens Property Insurance||Florida hurricanes||$1,500m|
|Citrus Re Ltd. (Series 2014-2)||Heritage Property and Casualty Insurance Co.||U.S. earthquake (New Madrid region)||$50m|
|Kilimanjaro Re Ltd. (Series 2014-1)||Everest Reinsurance Company||U.S. named storms, U.S. earthquakes||$450m|
|Lion I Re Ltd.||Assicurazioni Generali S.p.A.||European windstorm||$262m|
|Citrus Re Ltd. (Series 2014-1)||Heritage Property and Casualty Insurance Co.||U.S. named storms (Florida only initially)||$150m|
|Merna Re V Ltd.||State Farm||U.S. earthquake (New Madrid region)||$300m|
|Riverfront Re Ltd.||Great American Insurance Group||U.S. and Canada named storms, earthquakes, severe thunderstorms and winter storms||$95m|
|Kizuna Re II Ltd.||Tokio Marine & Nichido Fire||Japan earthquake||$245m|
|Gator Re Ltd.||American Strategic Insurance Group||U.S. named storms and severe thunderstorm||$200m|
|Dodeka II||Unknown||U.S. wind and earthquake risks||$25m|
|Queen Street IX Re Ltd.||Munich Re||U.S. hurricane, Australia cyclone||$100m|
|Omamori||Tokio Millennium Re||U.S. earthquakes and named storms (2nd event)||$25m|
|Dodeka I||Unknown||U.S. multi peril||$22m|
|Kane SAC Series 2014-1||Unknown||Private catastrophe bond notes||$50m|
|Eden Re Ltd.||Munich Re||Collateralized reinsurance sidecar notes||$63m|
|Windmill I Re Ltd. (Series 2013-1)||Achmea Reinsurance Company N.V.||Dutch windstorm||$55m|
|Queen City Re Ltd. (Series 2013-1)||American Modern Insurance Group, Inc.||U.S. named storms||$75m|
|VenTerra Re Ltd. (Series 2013-1)||QBE Insurance Group Ltd. subsidiaries||U.S. earthquake, Australia cyclone, Australia earthquake||$250m|
|Loma Reinsurance (Bermuda) Ltd. (Series 2013-1)||Argo Group||Tropical cyclones, U.S earthquake, U.S. severe thunderstorm||$172m|
|Tradewynd Re Ltd. (Series 2013-2)||AIG||U.S., Caribbean, Gulf of Mexico named storms. U.S., Canada earthquake||$400m|
|Galileo Re Ltd. (Series 2013-1)||Catlin||U.S. named storms, U.S. earthquake, Canada earthquake, European windstorm||$300m|
|Nakama Re Ltd. (Series 2013-1)||Zenkyoren||Japan earthquake||$300m|
|Northshore Re Limited (Series 2013-1)||AXIS Capital Holdings Ltd. subsidiaries||U.S. hurricane, U.S. earthquake||$200m|
|MetroCat Re Ltd. (Series 2013-1)||First Mutual Transportation Assurance Co.||Storm surge (named storm induced)||$200m|
|Tradewynd Re Ltd. (Series 2013-1)||AIG||U.S., Caribbean, Gulf of Mexico named storms. U.S., D.C., Canada earthquake||$125m|
|Mona Lisa Re Ltd. (Series 2013-2)||Renaissance Re and DaVinci Re||U.S. and Puerto Rico named storms. U.S. earthquakes||$150m|
|Tramline Re II Ltd. (Series 2013-1)||Amlin AG||U.S earthquake, Canada earthquake||$75m|
|Queen Street VIII Re Ltd.||Munich Re||U.S. hurricane, Australia cyclone||$75m|
|Blue Danube II Ltd. (Series 2013-1)||Allianz Argos 14 GmbH||U.S., Caribbean, Central American, Mexican hurricane. U.S., Canadian earthquake||$175m|
|Sanders Re Ltd. (Series 2013-1)||Allstate||U.S. hurricane, U.S. earthquake||$350m|
|Bosphorus 1 Re Ltd.||Turkish Catastrophe Insurance Pool||Turkey earthquake||$400m|
|Tar Heel Re Ltd. (Series 2013-1)||North Carolina JUA / IUA||North Carolina hurricane||$500m|
|Merna Re IV Ltd. (Series 2013-1)||State Farm||U.S. earthquake (New Madrid region)||$300m|
|Everglades Re Ltd. (Series 2013-1)||Citizens Property Insurance||Florida hurricanes||$250m|
|Compass Re Ltd. (Series 2012-1)||National Union Fire Insurance Co. of Pittsburgh||U.S. hurricane, U.S. earthquake||$400m|
|Lakeside Re III Ltd.||Zurich American Insurance & Zurich Insurance Co. Ltd.||U.S. and Canadian earthquake||$270m|
|Queen Street VII Re Ltd.||Munich Re||U.S. hurricane, European windstorm||$75m|
|Eurus III Ltd.||Hannover Re||European windstorm||$130m|
|Embarcadero Re Ltd. (Series 2012-2)||California Earthquake Authority||California earthquake||$300m|
|Queen Street VI Re Ltd.||Munich Re||U.S. hurricane, European windstorm||$100m|
|Blue Danube Ltd. (Series 2012-1)||Allianz Argos 14 GmbH||U.S. hurricane, U.S. earthquake, Canada earthquake, Caribbean hurricane, Mexico hurricane||$240m|
|Queen Street V Re Ltd.||Munich Re||U.S. hurricane, European windstorm||$75m|
|Embarcadero Re Ltd. (Series 2012-1)||California Earthquake Authority||California earthquake||$150m|
|Tramline Re Ltd. (Series 2011-1)||Amlin AG||U.S. hurricane, U.S. earthquake, European windstorm||$150m|
|Golden State Re Ltd. (Series 2011-1)||California State Compensation Insurance Fund||Workers compensation claims resulting from California earthquakes||$200m|
|Compass Re Ltd. (Series 2011-1)||National Union Fire Insurance Co. of Pittsburgh||U.S. hurricane, U.S. earthquake||$575m|
|Queen Street IV Capital Ltd.||Munich Re||U.S hurricane, European windstorm||$100m|
Total catastrophe bonds and insurance-linked securities: $12.959 billion
|Blue Capital Global Reinsurance Fund Limited||$187m|
|CATCo Reinsurance Opportunities Fund – Ordinary Shares||$344m|
Total reinsurance-linked investment fund share classes (approximate): $531m
Total insurance-linked listings on the BSX currently: $13.490 billion