Nascent Re issues its first listed insurance-linked securities, €10m OFS Re preferred shares

Nascent Re Ltd. a licensed reinsurance transformer owned and operated by Bermuda-based Nascent Group, has completed its first issuance of listed insurance-linked securities, as a €10 million tranche of OFS Re Series 2026-001 preferred shares have been admitted to the Bermuda Stock Exchange (BSX).

Nascent Group is a technology-driven insurance management, ILS servicing and reinsurance transformer specialist, with its Nascent Re structure 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 the first collateralized reinsurance or ILS arrangement we’ve seen from Nascent Re, as the only one to be listed and so made public so far The structure has likely facilitated many more similar but unlisted arrangements.

Nascent Re is active in facilitating the matching of reinsurance and retrocessional risk and capital for investors and ILS fund managers, while also offering traditional insurance or reinsurance clients an efficient way to transact with the capital markets.

As a result, 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.

For this first listed ILS transaction, Nascent Re Ltd. has issued €10 million of Series 2026-001 preferred shares on behalf of its segregated account named OFS Re.

The €10 million tranche of OFS Re Series 2026-001 preferred shares are due for maturity at the end of 2026, so presumably represent a one year or less reinsurance or retrocession arrangement.

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

It’s not immediately clear what form the underlying reinsurance or retrocessional arrangement and resulting shares take, whether representing a private collateralized reinsurance deal, private quota share or sidecar, or a private cat bond.

However, 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 OFS Re transaction in our cat bond Deal Directory, for now.

It is interesting that the notes are denominated in Euro’s, which suggests either the underlying risks or perils are from Europe, or the sponsor is from that region, or potentially that the investor or fund is preferred investments in that currency.

Nascent Re Ltd. is a Class 3 licensed Bermuda insurer and it’s encouraging to see it completing its first listed issuance of ILS preferred shares, signalling that activity continues to pick-up for the company structure and in time we’re likely to see more transactions, including other types of ILS notes from the vehicle.