cat bond lite

During the fourth quarter of 2023, the majority of tranches of cat bond notes closed above their initial target size, resulting in an average increase of 27% for the period, according to Artemis’ data.

A new private catastrophe bond arrangement has come to light, as the Artex Capital Solutions managed Eclipse Re structure has issued a $100 million Eclipse Re Ltd. (Series 2024-1A) deal.

A record breaking year for the catastrophe bond and related insurance-linked securities (ILS) market and continued momentum in early 2024 is having a positive influence on the wider ILS market, according to Brad Adderley, Bermuda Managing Partner, Appleby.

The first private catastrophe bonds of 2024 have now come to light, as $59 million in Seaside Re private cat bond notes have been issued by Kaith Re Ltd., the transformer vehicle owned by global reinsurance firm Hannover Re.

All of the 2023 issued vintage of Hannover Re’s Seaside Re private catastrophe bonds have now had their maturity dates extended, Artemis has learned, taking the total extended to almost $139 million across the 2020, 2021, 2022 and now 2023 vintage deals.

The catastrophe bond and related insurance-linked securities (ILS) market saw activity levels accelerate right the way through the busiest fourth-quarter in its history, resulting in a record year of issuance and market growth, Artemis’ new quarterly market report explains.

Private catastrophe bond issuance for 2023 has now reached $642 million, as a new issuance of privately placed insurance-linked securities (ILS) has been completed by the Eclipse Re vehicle, a nearly $100 million Eclipse Re Ltd. (Series 2023-9A) deal.

Privately placed, or cat bond lite transactions continue to contribute to total catastrophe bond issuance, although so far in 2023, the total value of deals issued is below the 10-year average, according to Artemis’ Deal Directory.

Annual global catastrophe bond and related insurance-linked securities (ILS) issuance is officially on-track to breach $14 billion for the first time ever in 2023, while traditional 144A property cat bond issuance will also reach a new record high, according to Artemis’ market data.

Six new private cat bond issuances totalling almost $91.2 million of risk capital have come to light from Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform based in Bermuda, that is owned and operated by Artex Capital Solutions.