Another private catastrophe bond offering from the Eclipse Re platform, which is operated by the Horseshoe Group and Rewire Securities LLC, has come to market, in the form of a $97.6 million Eclipse Re Ltd. (Series 2018-02A) transaction, for which the sponsor is currently unknown.
It follows closely behind the $53.3 million Eclipse Re Ltd. (Series 2018-01A) deal that completed at the end of May and which we now understand to be a renewal of a reinsurance arrangement for sponsoring insurer U.S. Coastal Insurance Company.
This latest Eclipse Re offering, which is the second that we’ve seen completed so far this year, is also the largest we’ve seen to date from the platform, reflecting a trend which we’ve seen for private cat bond and ILS deals to increase in size over the last few years.
This transaction saw special purpose insurer Eclipse Re Ltd. issuing two tranches of Series 2018-02A notes with a total value of roughly $97.6 million, with both tranches having a due date of June 1st 2019, so likely corresponding to a one-year collateralized reinsurance arrangement from the mid-year renewals.
Each tranche corresponds to a single segregated account of the Eclipse Re vehicle with likely a separate reinsurance contract contained within each of those.
The first tranche is an $80 million Series 2018-02A Notes – SAC EC0017 tranche and the second a just over $17.6 million Series 2018-02A Notes – SAC EC0018 tranche.
Both tranches of notes were listed on the Bermuda Stock Exchange (BSX) as Insurance Related Securities and placed with qualified ILS investors and ILS funds.
We don’t know who the sponsor of this latest Eclipse Re private cat bond is, but we understand that the underlying perils are property catastrophe risks.
Horseshoe Group acted as the listing sponsor, through its Horseshoe Corporate Services entity.
ILS management, servicing, transformation and fronting specialists Horseshoe Group and boutique insurance investment banking specialists Rewire Securities launched the Eclipse Re Ltd. platform in 2017 offering collateralized reinsurance providers a way to transform, securitize, market and place transactions with investors as private ILS or cat bond notes with secondary liquidity features.
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