Eclipse Re vehicle issues new $30m private catastrophe bond

Eclipse Re Ltd., a special purpose insurance and segregated accounts company that was originally launched by Horseshoe Group and Rewire Securities LLC has issued a $30 million tranche of Eclipse Re Ltd. (Series 2019-03A) private catastrophe bond notes.

Eclipse Re is a vehicle that can be used by insurance-linked securities (ILS) funds or investors to engage in reinsurance and retrocession contracts that can be transformed and securitized into private cat bond form.

We presume that ILS and reinsurance market facilitator Horseshoe Group now takes the lead on these Eclipse Re transactions, given that Rewire Securities no longer operating as a broker-dealer, after the team joined with Vida to create insurance-linked securities (ILS) fund manager Merion Square Capital LLC.

This latest deal is the second issuance from Eclipse Re Ltd. that we’ve recorded in our Deal Directory in 2019 so far. However, we’re aware these are not the only two, as there is at least one more with the use of the Eclipse Re vehicle by ILS fund manager Fermat Capital Management to participate in Florida Citizens reinsurance renewal that has not yet fully come to light.

Eclipse Re Ltd. has issued a single $30 million tranche of private catastrophe bond notes, which will have been sold to investors and the proceeds used as collateral to underpin certain reinsurance or retrocession contracts.

The $30 million Eclipse Re Ltd. (Series 2019-03A) transaction saw special purpose insurer Eclipse Re Ltd. issuing one tranche of Series 2019-03A notes sized at $30 million, with the notes having a due date of July 1st 2020.

We assume these notes represent a one-year reinsurance or retrocession contract underwritten at the mid-year renewals.

The tranche of notes represents a single segregated account of the Eclipse Re vehicle and the notes have been admitted for listing on the Bermuda Stock Exchange (BSX) as insurance related securities.

Horseshoe Group acted as the listing sponsor for the notes, through its Horseshoe Corporate Services Limited entity.

Further details are not available on the underlying risks and reinsurance contract behind this latest private cat bond deal, however we assume that the transaction underlying it features property catastrophe risks of some description.

This second listed issuance takes those we’ve tracked in 2019 from Eclipse Re to $50 million of principal so far. We suspect there will be more to come.

The Eclipse Re Ltd. platform was launched in 2017 to offer 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.

We’ve added this Eclipse Re Ltd. (Series 2019-03A) private catastrophe bond to the Artemis Deal Directory.