Private cat bond news

A new private catastrophe bond transaction has been completed, Resilience Re Ltd. (Series 15121A), the first transaction we’ve heard of to use the Resilience Re cat bond issuance platform that was launched in October 2014 by broker Willis.

Private catastrophe bonds, also known as cat bond lites, provide a useful way for sponsors to test the ILS market and their appetite to sponsor larger deals in future, as well as an entry-point for sponsors seeking lower limits.

The catastrophe bonds and insurance-linked securities (ILS) market has witnessed rapid growth in recent years, aided by the growing acceptance and use of cat bond lite structures, with 2015 already being a record year for private deal issuance.

The catastrophe bond and insurance-linked securities (ILS) market has continued its path of evolution during 2015, underlined by strong issuance, the rise of cat bond lite transactions, and its ability to offer a growing range of solutions, according to Property Claim Services (PCS).

A new private catastrophe bond issuance has completed and listed in Bermuda using the Kane SAC Limited Note Program. $9.722m of Kane SAC Limited – Series Ax Notes were listed on the Bermuda Stock Exchange (BSX) yesterday.

The growing acceptance, understanding and demand for smaller catastrophe bond issues and privately placed transactions during the first-half of 2015 has already broken all previous records, with just over $537 million of privately cat bonds completed year-to-date.

A $47.67m private catastrophe bond, or insurance-linked security (ILS), transaction, named Hotaru, has been issued by the Shima Reinsurance Ltd. vehicle, which is owned and operated by Tokio Solution Management Ltd. and part of its cat bond platform, Tokio Tensai.

A new $17.6m private catastrophe bond or ILS transaction from a segregated account named ‘Tralee‘  has been issued through global independent insurance manager Kane’s private ILS platform, the Kane SAC Limited Note Program.

Another private catastrophe bond, or cat bond lite, transaction has been launched by Swiss headquartered ILS and reinsurance investment manager Twelve Capital, with the completion of Dodeka VII, an $18.899m deal.

There appears to be a gradual shift towards privately placed catastrophe bond transactions, or cat bond lites, as smaller, more efficient structures increasingly come to the ILS market, rather than full-blown 144A affairs, according to Property Claim Services (PCS) new report.