Nascent Re issues $20m Quinton, $20m Stevenage preferred share insurance-linked securities

Nascent Re Ltd. a licensed reinsurance transformer owned and operated by Bermuda-based Nascent Group, has completed issuance of two more series of preferred share private insurance-linked securities (ILS), with the vehicle issuing $20 million each for Quinton and Stevenage segregated accounts.

These new issuances become the third and fourth we’ve seen from Nascent Re, with all four seen to-date being issuances of preferred shares, likely representing some kind of collateralized reinsurance or private ILS arrangement.

Nascent Group is a technology-driven insurance management, ILS servicing and reinsurance transformation specialist, with Nascent Re being its transformer.

The Nascent Re vehicle is utilised by re/insurers and investors looking to transact reinsurance on a collateralized basis, with the help of a managed risk transformation platform.

While we’ve now counted four issuances of preferred shares from Nascent Re, we expect the structure has facilitated many more similar collateralized reinsurance or ILS arrangements in its history.

The first issuance of listed insurance-linked securities from Nascent Re came to light earlier this year in March, with a €10 million tranche of OFS Re Series 2026-001 preferred shares issued.

Then in August, we saw Nascent Re issuing $23.5 million of preferred shares through a segregated account named Telford, the second and still largest single issuance we’ve seen details of so far from the structure.

Now, it’s come to light that Nascent Re Ltd. has issued US $20 million of preferred shares on behalf of a segregated account named Quinton and a further US $20 million of preferred shares on behalf of a segregated account named Stevenage.

The $20 million tranche of Quinton preferred shares are due for maturity on December 31st 2026, while the $20 million of Stevenage preferred shares are due for maturity on December 15th 2026, so each could represent a collateralized reinsurance or retrocession arrangement that runs through the wind season, given the timing.

All $40 million of preferred shares from the Quinton and Stevenage segregated accounts of Nascent Re have been privately placed with qualifying investors and have now been listed on the Bermuda Stock Exchange (BSX) as insurance-linked securities.

As with the previous issuances from Nascent Re, we don’t know their form and the fact they are preferred shares, rather than principal-at-risk notes, might suggest the underlying structure is a quota share reinsurance or retrocessional arrangement, rather than excess-of-loss.

So we cannot be sure if this would classify as a private cat bond and, as a result, we haven’t included these Nascent Re Series Quinton or Stevenage ILS transactions in our cat bond Deal Directory, for now.

Nascent Re Ltd., a Class 3 licensed Bermuda insurer, is used to facilitate the matching of reinsurance and retrocessional risk and capital between sponsors and investors or ILS fund managers, providing a way for traditional insurance or reinsurance clients to efficiently transact with the capital markets.

Nascent Re can transform re/insurance related risks into securities for investors and ILS funds, so providing a conduit to the capital markets for Nascent clients.