Private cat bond news

In an interview with Artemis, Sarah Demerling and Sherman Taylor of Estera Services (Bermuda) Limited, discussed the cat bond lite sub-sector, its impact on Bermuda, and how the island facilitates the issuance of the smaller, yet growing sub-sector of the global insurance and reinsurance linked securities (ILS) space.

According to Artemis’ sources, one tranche of the almost $54 million Oak Leaf Re Ltd. (Series 2017-1) catastrophe bond is set to pay out to sponsor Southern Oak Insurance Company, after the insurers losses from hurricane Irma triggered the cat bond.

Erosion of the deductible layer sitting beneath the $180 million Skyline Re Ltd. (Series 2017-1) catastrophe bond has slowed in the second-quarter of 2017, with the $106 million of qualifying losses reported after the first-quarter only rising to $119 million by the middle of the year.

Another new private catastrophe bond, or cat bond lite, transaction has been completed, issued and listed in Bermuda using the Artex SAC Limited ILS Note Program II, in the form of $8.311 million of Artex SAC Limited – Series EX Notes.

Tokio Solution Management Ltd., the collateralized reinsurance and insurance-linked securities (ILS) unit of global reinsurer Tokio Millennium Re AG, has completed a new private cat bond through its Shima Re vehicle, with the issuance of a $70.6 million Hotaru 2 transaction which we believe to be a renewal for the 2015 Hotaru.

The seventh and largest of the Oak Leaf Re catastrophe bond deals has just been announced as completed, a $53.995 million Oak Leaf Re Ltd. (Series 2017-1) which has been structured and placed by the Jardine Lloyd Thompson Capital Markets (JLTCM) team, for sponsor Southern Oak Insurance Company.

Jardine Lloyd Thompson Capital Markets (JLTCM), the investment banking and ILS structuring & issuance team of the reinsurance brokerage JLT Re, has successfully structured and placed another private catastrophe bond transaction, a $65.1 million Market Re Ltd. (Series 2017-1) transaction for a Florida sponsor.

Insurance, reinsurance and capital markets broker and advisory Willis Towers Watson’s private catastrophe bond issuance platform has successfully completed another deal, the brokers fourth so far this year, a $37 million Resilience Re Ltd. (Series 1761A) transaction.

Insurance and reinsurance linked investment manager Twelve Capital is back with its fourteenth Dodeka private or cat bond lite transaction, a $9.631 million Dodeka XII deal, as it securitizes another slice of reinsurance risk in order to add liquidity for its catastrophe bond investment mandates.

After primary insurer The Cincinnati Insurance Companies (Cincinnati) reported Q1 2017 catastrophe losses of around $106 million (pre-tax), which will have eroded some of the buffering layers and retention beneath its $180 million Skyline Re Ltd. (Series 2017-1) catastrophe bond, broker pricing sheets are now reflecting an increased risk of loss for the bond.