cat bond lite

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed the issuance of two private cat bond arrangements totalling almost $18.8 million of risk capital issued.

There has been a further extension of maturity for a number of the 2022 vintage Seaside Re private catastrophe bond transactions that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., but some have now been allowed to mature, indicating greater clarity over the covered loss events.

The catastrophe bond and related insurance-linked securities (ILS) market saw $3.3 billion of new risk capital issued in the first-quarter of 2023, but the big story of the opening period of this year was the elevated spread environment and as a result the promise of higher returns for investors, Artemis’ latest quarterly report shows.

German reinsurance giant Hannover Re has brought the first private catastrophe bonds that we’ve learned of in 2023, with three Seaside Re cat bond lites totalling $32.5 million of risk capital issued, the latest, use of its Kaith Re transformer vehicle to come to light.

The catastrophe bond market saw a lower than average $1.6 billion of issuance in the fourth-quarter of 2022, but the full-year total still reached $10.5 billion, while investors secured much higher pricing as cat bond spreads rose amid the hardening of reinsurance rates, Artemis’ latest quarterly report shows.

Isosceles Insurance Ltd., the Bermuda-domiciled private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has completed another private cat bond note issuance, with an $18.48 million Isosceles Insurance Ltd. (Series 2022-H) deal.

Many of the Seaside Re private catastrophe bond transactions that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd. have seen their maturities extended and the entire Series 2022 group of cat bonds have now been extended for the first time.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has listed three more private cat bond issues totalling roughly $29.54 million of notes in Bermuda.

The global market for catastrophe bond issuance slowed down dramatically in the third-quarter of 2022, resulting in below-average issuance for the period. But still the outstanding cat bond market stands $4.7 billion bigger than at the same time a year earlier, Artemis’ latest quarterly report shows.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed two more issuances of private cat bond notes, totalling $76 million of new risk capital issued.