Eclipse Re Ltd. private cat bond platform in $8.7m issuance

Eclipse Re Ltd. private cat bond platform in $8.7m issuance

Eclipse Re Ltd., the Horseshoe managed personal syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform, has actually completed its second issuance of this year, with an $8.7 million Eclipse Re Ltd. (Series 2021-02A) deal coming to light.The Eclipse Re platform issued nearly $107 countless listed private feline bonds, or feline bond lites, during 2020, which was a decline on 2019s nearly $300 million of ILS deals released by the structure.
2021 started on a strong footing for Eclipse Re, with the very first private cat bond it released back in January being an outstanding $80 million in size.
Now the structure has completed its 2nd issuance, at a much smaller size of just $8.7 million.
Eclipse Re Ltd. is a Bermuda domiciled unique purpose insurer (SPI) and segregated account company, managed by key insurance-linked securities (ILS) market facilitator and provider Horseshoe.
The Eclipse Re structure is utilized to make it possible for issuance of insurance-linked securities (ILS) notes, through the transformation, securitisation and ultimately move to one, or syndication to a group of investors, of reinsurance or retrocession plans.
As a result, the main use-cases for Eclipse Re are the issuance of privately syndicated collateralised reinsurance notes, or private catastrophe bond notes, with a capability to cover a range of underlying hazards and structures or line of work.
Not every Eclipse Re personal cat bond is broadly syndicated however, with the structure typically utilized as a transformer for ILS fund managers.
A number of issuances from the vehicle over the last couple of years have been for the advantage of specialist, cat bond focused ILS fund manager Fermat Capital Management, acting as the sole financier behind some issuances from the platform.
For its 2nd offer of 2021, Eclipse Re Ltd. has actually issued $8.7 million of Series 2021-02A keeps in mind, with the notes having a last maturity date of December 31st 2021, suggesting they might represent a transaction that ranges from the April renewal through to year-end.
That may recommend the underlying is a property catastrophe exposed contract such as an industry-loss service warranty (ILW), created to cover the US hurricane season, however we can not make sure. However we do assume they are home disaster risk-linked notes, offering an unnamed protection buyer, or fund, with reinsurance or retrocession security to the end of 2021.
The $8.7 million issuance of Series 2021-02A notes from Eclipse Re represent the vehicles segregated account EC0034.
The notes have been positioned with certified institutional investors and have been confessed to the Bermuda Stock Exchange (BSX) as insurance-related securities for their listing, with Horseshoe likewise serving as listing sponsor through its Horseshoe Corporate Services Limited unit.
The earnings from the sale of the $8.7 million of private catastrophe bond notes will be utilized as collateral to underpin the related reinsurance or retrocession contract, kept in a trust.
ILS and reinsurance market company and facilitator Horseshoe takes a lead role as supervisor for these Eclipse Re Ltd. deals, with this unique function car an essential part of its offering to clients.
Private ILS and cat bond issuance structures, such as Eclipse Re, can be of advantage to both ILS fund managers and financiers by making it possible for reinsurance or retrocession arrangements to be channelled to and in between them by means of an effective risk transformation and securitisation platform, with the resulting property being series of investable notes fit to more liquid ILS fund strategies, such as cat bond funds.
Weve included this new $80 million Eclipse Re Ltd. (Series 2021-02A) personal disaster bonds to the Artemis Deal Directory.

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