German reinsurance giant Munich Re has completed its first placement of collateralised reinsurance sidecar notes for 2019, with the sponsorship and placement of an almost $86.8 million tranche of Series 2019-1 participating notes from its Eden Re II Ltd. sidecar vehicle.
Munich Re has been tapping the capital markets for retrocessional reinsurance protection and sharing its underwriting returns with investors through collateralised sidecar vehicles named Eden Re since 2014, with the deals so far amounting to cessions of almost $2 billion of risk transferred over that time (all detailed in our Reinsurance Sidecar Transaction Directory).
For 2019 the reinsurer has begun with a smaller tranche of notes, as it did in 2018, with this $86.8 million of participating notes that are due March 22nd 2023.
This 2019 Eden Re II transaction saw a single tranche of participating notes issued and listed on the Bermuda Stock Exchange yesterday, with special purpose reinsurer Eden Re II Ltd. issuing almost $86.8 million of Series 2019-1 Class A participating notes that have a due date of March 22nd 2023, acting on behalf of an Eden Re II Segregated Account 2019-1.
The due date of March 22nd is the same as the 2018-1 tranche issued a year ago, suggesting this is a renewal of that arrangement and likely covers a similar layer of Munich Re’s property catastrophe book.
Munich Re’s sidecar issuances began the same way a year ago, with a smaller first tranche followed up by a larger tranche that took the 2018 Eden Re II issues to around $300 million.
It’s likely we will see another issuance from Munich Re’s sidecar vehicle in the coming weeks to boost the Eden Re II 2019 transaction as well.
Munich Re has also completed its first transaction for 2019 with Dutch pension investor PGGM, a $20 million Leo Re 2019, in recent days.
The Eden Re collateralised reinsurance sidecar series see institutional investors supporting Munich Re’s reinsurance underwriting through specific retrocessional cessions, taking a quota share of the subject business from the reinsurer.
Read our previous articles on Munich Re’s Eden Re II Ltd. collateralised reinsurance sidecar.
For more details on reinsurance sidecar investments and transactions view our list of collateralized reinsurance sidecars.