New $53.3m Eclipse Re Ltd. private cat bond or ILS transaction completed


A new private catastrophe bond arrangement has been completed using the Eclipse Re platform operated by the Horseshoe Group and Rewire Securities LLC, a $53.3 million Eclipse Re Ltd. (Series 2018-01A) deal that we understand to be a renewal of a transaction completed a year earlier.

The new private cat bond transaction was listed on the Bermuda Stock Exchange (BSX) at the end of May, with the deal made up of three tranches of notes.

This new Eclipse Re 2018-01A transaction saw three tranches of Series 2018-01A private cat bond notes issued, totaling $53.3 million and with each tranche corresponding to a single segregated account of the Eclipse Re vehicle and a separate reinsurance contract contained within each of those.

The first is a $4.8 million Series 2018-01A Notes – SAC EC0010 tranche. The second, a $10.5 million Series 2018-01A Notes – SAC EC0011 tranche. The last and largest is a $38 million Series 2018-01A Notes – SAC EC0012 tranche.

These tranche sizes are all identical to the also $53.3 million Eclipse Re Ltd. (Series 2017-02A) transaction from a year ago and we’re told this is likely a renewal of that collateralized reinsurance arrangement.

Our sources said the sponsor of this transaction is a U.S. primary insurance company that is seeking capital markets support within its reinsurance program, tapping Eclipse Re to facilitate the arrangement.

We’re also told that the underlying perils are U.S. property catastrophe risks and that the trigger for the protection from each tranche of notes is an indemnity arrangement, tied to the ceding insurers ultimate net losses.

The maturity date for each tranche of notes is set for the 1st July 2019, so the transaction likely features the collateralization of reinsurance arrangements covering just around a one year term, so probably transacted for a mid-year renewal.

The $53.3 million of Eclipse Re 2018-01A notes were listed on the BSX as Insurance Related Securities and have been privately placed with qualified investors, with we assume Rewire Securities acting as the bookrunner for the transaction.

Horseshoe Group acted as the listing sponsor, through its Horseshoe Corporate Services entity.

ILS management, servicing, transformation and fronting specialists Horseshoe Group and boutique insurance investment banking specialists Rewire Securities launched the Eclipse Re Ltd. platform in 2017 as a way for collateralized reinsurance transactions to be swiftly and easily transformed, securitized, marketed and placed with investors as private ILS or cat bond notes with secondary liquidity features.

The Eclipse Re platform provides cedents with an efficient way to issue private catastrophe bond transactions, achieving broad syndication through Rewire’s network of investors and to transform private collateralized reinsurance into a more liquid and tradable asset.

This new Eclipse Re transaction is not the issuance sponsored by Youi that we covered recently here. We understand that the Youi private ILS arrangement is still in the market and slated to complete at the end of June.

We’ve added this Eclipse Re Ltd. (Series 2018-01A) to the Artemis Deal Directory and will update you should further details emerge.

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