Private cat bond news

A new $187 million, three tranche, private catastrophe bond issuance has been completed in Resilience Re Ltd. (Series 1712) using the platform owned by insurance, reinsurance and capital markets broker and advisory Willis Towers Watson.

German reinsurance firm Hannover Re has facilitated another private catastrophe bond (or cat bond lite) transaction, a $10 million LI Re (Series 2016-2), with the notes issued through its segregated accounts vehicle, Kaith Re Ltd. listing on the Bermuda Stock Exchange (BSX).

Following the completion of the Market Re Ltd. (Series 2016-5) catastrophe bond, Jardine Lloyd Thompson Capital Markets (JLTCM) expects to see further innovation around weather bonds, highlighting the willingness of the ILS market to assume this risk.

Standard & Poor’s has assigned its ‘BBB+ (sf)’ issue credit rating to the $9 million principal-at-risk variable-rate notes issued by Horseshoe Re II Ltd. segregated accounts LC1100 and LC2100, which are the notes from the private cat bonds issued for ILS fund manager Leadenhall Capital Partners.

Jardine Lloyd Thompson Capital Markets (JLTCM) ILS structuring and issuance team has successfully closed the ground-breaking temperature-linked weather catastrophe bond Market Re Ltd. (Series 2016-5), securing $30.75m of coverage against European winter temperature extremes for the sponsor.

London headquartered insurance and reinsurance linked securities investment manager Leadenhall Capital Partners has achieved an investment grade rating for two private catastrophe bonds.

A new private catastrophe bond issuance has completed and listed in Bermuda using the Artex SAC Limited Note Program. $8.947m of Artex SAC Limited – Series CX Notes were listed on the Bermuda Stock Exchange (BSX) yesterday.

The continued growth of private cat bond and ILS deals continued in the second-quarter of 2016, helping to offset a notable deterioration in traditional 144A issuance and a high volume of maturities that resulted in a decline of the outstanding market size, according to GC Securities.

A new catastrophe bond has been launched which aims to be the first to cover temperature related weather risks since 1999, as sponsor Allianz Risk Transfer seeks $70m of coverage against European winter temperature extremes through a Market Re Ltd. (Series 2016-5) deal.

In the latest in our series of interviews with figures from the risk transfer and insurance-linked securities (ILS) and reinsurance markets, Artemis spoke with the ILS management and administration team at Artex Risk Solutions.