cat bond lite

Demand for reinsurance and retrocessional protection from cedants, as well as a slew of new first time market entrant sponsors, have helped the global catastrophe bond market execute on $5.1 billion of new issuance in the second-quarter of 2022, according to Artemis’ latest quarterly report.

Eclipse Re Ltd., the Artex-managed and operated private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has completed the issuance of an $8.73 million Eclipse Re Ltd. (Series 2022-2A) transaction in recent days.

Artex Risk Solutions’ segregated account reinsurance transformer platform, Artex SAC Limited, has completed another new private catastrophe bond issuance, with a $100 million Artex SAC Limited – Bricolage Notes transaction placed privately with qualified investors.

Issuance of new catastrophe bonds and related insurance-linked securities (ILS) has already surpassed $5.1 billion in 2022 and there are already another nearly $2.2 billion in the pipeline that could complete before the middle of the year.

On the heels of a record year for property catastrophe bond issuance, momentum continued in the first quarter of 2022 as sponsors brought approximately $3 billion of traditional 144a transactions to market.

The outstanding market for catastrophe bonds and related insurance-linked securities (ILS) reached a new all-time high at the end of the first-quarter of 2022, as a busy start to the year took Artemis’ measure of the sector to $37.5 billion.

Eclipse Re Ltd., the Horseshoe managed private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has completed the first issuance we’ve seen of 2022, with a $75 million Eclipse Re Ltd. (Series 2022-1A) transaction coming to light.

Almost $110 million of Seaside Re private catastrophe bond transactions have had their maturity dates extended, suggesting that these privately placed ILS deals, that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., might be considered at-risk of loss.

Global reinsurance giant Hannover Re has facilitated the issuance of another $84.5 million of Seaside Re private catastrophe bonds for 2022, with another eight issuances from its Kaith Re transformer vehicle coming to light.

For the first time on-record, annual issuance of privately placed catastrophe bond transactions has surpassed $1 billion in 2021, as these more streamlined insurance-linked securities (ILS) arrangements continued to play an important role for some protection buyers, ILS funds and investors.