Three Eclipse Re deals bring 2022 cat private bond issuance to $720m


Eclipse Re Ltd., a private syndicated collateral reinsurance note, private catastrophe bond issuance and reinsurance transformation platform owned and operated by Artex Capital Solutions, has listed three other private cat bond issuances for a total of approximately $29.54 million in Bermuda notes.

eclipse-re-catastrophe-bond-ilsAs always, we don’t know the exact date of their issuance, but they all appeared as listings on the Bermuda Stock Exchange (BSX) this week.

As we don’t know the actual issuance dates, we are including these new private catastrophe bonds in our data as soon as we discover them, so they will be classified as December issuances and will feature in our upcoming Q4 and 2019 catastrophe bond. full year. market report.

These three new Eclipse Re private catastrophe bonds offer their reinsurance or retrocession protection to their cedants or sponsors until the June 1, 2023 maturities.

Eclipse Re Ltd. is a Bermuda-domiciled Special Purpose Insurer (SPI) and segregated account company that is managed by insurance-related securities (ILS) market facilitator and service provider Artex Capital Solutions.

Eclipse Re Ltd. issued $10 million in Series 2022-04A Notes, $13.875 million in Series 2022-05A Notes and just over $5.662 million in Series 2022-07A Notes, each in the name of different separate accounts of the vehicle, through these three private series of cat bonds to emerge.

Proceeds from the sale of approximately $29.54 million of private cat bonds issued by Eclipse Re on these three series will have been used as collateral to support their related reinsurance or retrocession contracts, with the collateral being held in trust.

We don’t know the underlying perils, but these Eclipse Re cat bonds typically carry property catastrophe risks. Also, we don’t know the type of trigger used for coverage.

private-cat-bond-issuance-tableThese three new issues from Eclipse Re Ltd. are now listed in our deal directory and take the 2022 private catastrophe bond issuance, which now stands at nearly $720 million for the year so far.

Analyze private catastrophe bond issuance by year using our interactive chart.

In 2021, the private issuances of catastrophe bonds that we have recorded in our transaction directory exceeded $1 billion for the first time.

Issuance of private cat cat bonds, or cat bond lite as they are often called, has so far not kept pace, but given the challenges faced in the cat bond industry this year , this is not surprising.

As a result, reaching $720 million of these small trades placed by private investors before the end of the full year is always an impressive signal that their usefulness is still important for cedants as well as cat bond investors.

Eclipse Re generally issues insurance securities (ILS), through transformation, securitization and ultimately transfer to one, or syndication to a group of investors, reinsurance or retrocession agreements.

Therefore, its main use cases are the issuance of privately syndicated collateralized reinsurance notes, or private catastrophe bonds (cata bond lite), with an ability to cover a wide range of structures and underlying risks. underlyings, or lines of insurance.

Eclipse Re private cat bonds are not always widely syndicated and the structure has often been used as a transformer for an ILS fund manager, to help secure a risk and make it investable for a catastrophe bond fund strategy .

We now have seven Eclipse Re private cat bond issues listed in our deal directory for 2022.

Artex Capital Solutions, a service provider and facilitator of the ILS and reinsurance market, plays an important role as manager of these transactions with Eclipse Re Ltd., this special purpose vehicle being a key part of its ILS infrastructure offering. to customers.

You can track catastrophe bond and related ILS issuance by year and transaction type in this chart.

You can also view the details of every private chat bond we’ve tracked by filtering our transactions directory to see only private ILS transactions.

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