Nascent Re issues $23.5m Telford preferred share insurance-linked securities

Nascent Re Ltd. a licensed reinsurance transformer owned and operated by Bermuda-based Nascent Group, has issued $23.5 million of preferred shares through a segregated account named Telford marking the second private insurance-linked securities (ILS) arrangement we’ve seen from this vehicle.

Nascent Group is a technology-driven insurance management, ILS servicing and reinsurance transformer specialist.

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

This is now the second collateralized reinsurance or ILS arrangement we’ve seen issued by Nascent Re, although the structure has likely facilitated many more similar arrangements in its history.

The first issuance of listed insurance-linked securities from Nascent Re came to market earlier this year, with a €10 million tranche of OFS Re Series 2026-001 preferred shares issued and admitted for listing on the Bermuda Stock Exchange (BSX).

In this second arrangement we’ve seen from the structure, Nascent Re Ltd. has issued US $23.5 million of preferred shares on behalf of its segregated account named Telford.

The $23.5 million tranche of Telford preferred shares are due for maturity on December 15th 2026, so likely represent a collateralized reinsurance or retrocession arrangement that perhaps runs through the wind season.

The Telford preferred shares have been privately placed with qualifying investors and have now been listed on the Bermuda Stock Exchange (BSX).

As with the first OFS Re issuance from Nascent Re that we saw earlier this year, we can’t be sure what form the underlying reinsurance or retrocessional arrangement takes, whether representing a private collateralized reinsurance deal, private quota share or sidecar arrangement, or a private cat bond.

Preferred shares are more typically utilised for quota share arrangements and reinsurance sidecars, so as a way for investors to participate in a share of a re/insurers risks, rather than as a private cat bond which are more typically excess-of-loss transactions and securities issued in a note format.

As a result, we haven’t included this Nascent Re Series Telford ILS transaction 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.