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Kane adds EuroClear Settlement to private cat bond & ILS platform


Global independent insurance and reinsurance manager Kane has announced the launch of a new ILS note program today, with an added feature, the addition of the EuroClear Settlement System which Kane says will facilitate secondary trading for cat bonds.

Kane SAC Limited, the private cat bond and ILS subsidiary of the insurance and reinsurance manager, has listed the new Kane SAC – ILS note program on the Bermuda Stock Exchange. Artemis first covered the listing of the new Kane SAC ILS note program last week when we wrote about the latest Dodeka I – 2015 private cat bond transaction from Swiss ILS manager Twelve Capital.

However, it’s now clear with today’s announcement that Kane is working hard to enhance its private cat bond and insurance-linked securities (ILS) platform, in order to make it more useful to investors. With the new ILS note program being set up with the EuroClear Settlement System in order to facilitate and enhance secondary trading for cat bonds.

Kane says that the addition of EuroClear will enable investors to trade notes over-the-counter using a recognisable system. The aim is to increase and enhance the liquidity and transparency around trading of the private ILS and cat bond lite notes that are issued using the Kane SAC platform, ultimately benefiting investors.

Commenting on the launch of the new ILS note program and enhanced private cat bond and ILS platform, Robert Eastham, Managing Director, Kane (Bermuda) Limited, said; “We are pleased to introduce the EuroClear Settlement System to the new Kane SAC – ILS note program. This is an important evolution in Kane’s Cat Bond Lite offering and will enhance both the tradeability and liquidity of Kane Note issuances, ultimately increasing the attractiveness of the structure to investors.”

The first issuance to use the new Kane SAC – ILS note program were Twelve Capital’s $20.7m Dodeka I – 2015 At-Risk Notes, which were listed on the Bermuda Stock Exchange (BSX) last week.

Enhancing the liquidity of the Kane SAC – ILS note program with the EuroClear addition will benefit any investors or ILS managers that want to use the platform to transform and securitise collateralised reinsurance or ILW contracts, increasing their ability to trade them after issuance.

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