Bermuda Stock Exchange (BSX) ILS & cat bond listings surpass $50bn

Bermuda Stock Exchange (BSX) ILS & cat bond listings surpass $50bn

Tape-record disaster bond and related insurance-linked securities (ILS) market issuance in 2021 has helped the Bermuda Stock Exchange (BSX) to increase the value its listings of feline bond and ILS notes by 26% throughout the year.Thanks to another extremely active year and record issuance of catastrophe bonds in 2021, as our report documents, the Bermuda Stock Exchanges (BSX) ILS particular listings, which include catastrophe bonds, mortgage insurance-linked securities (ILS), reinsurance sidecar notes and some listed ILS fund classes rose substantially to 757 noted ILS securities by the end of the year.
Even more remarkable is the fact the BSXs cat bond and ILS securities listings have now surpassed $50 billion, in terms of capital outstanding, for the first time.
Its one of the greatest years of ILS listings development for the BSX, as the record levels of feline bond issuance helped to drive the Exchanges listings value much greater over the course of the year.
BSX Chief Compliance Officer James McKirdy described to Artemis, “2021 was a positive year for the Exchange. The Insurance Linked Securities (ILS) market continued to grow, with the variety of ILS securities listings increasing from 253 in 2020 to 281 in 2021, with a combined small value of $19.77 billion compared to $15.77 billion in 2020.”
281 brand-new ILS securities being listed in a single year is a really remarkable number and reflects the BSXs ongoing importance as the house of ILS and feline bond listings.
Too is the $19.77 billion of newly listed ILS in 2021, which is a big figure thinking about cat bonds plus home mortgage ILS issuance only came to just over $20 billion during the year (there are some reinsurance sidecar notes consisted of, of course).
Despite emerging ILS domiciles increasingly hosting some ILS and feline bond issuance activity, the BSX continues to dominate the Exchange listing of any insurance-linked securities (ILS) provided throughout the world.
The BSX has the listing for the very first catastrophe bond issued in Hong Kong and many of the cat bonds and ILS provided in Singapore are also listed in Bermuda.
Thats testament to the hard work and effort of the BSX group over the last years, in engaging with the global ILS market and ensuring its listing offering is both simple to use, easily available and cost-effective for companies and provider.
Greg Wojciechowski, BSX President and Chief Executive Officer (CEO), commented to us in an interview, “Thanks to Bermudas early development in being an early mover in insurance-linked securities (ILS) and then its development, in regards to guideline and products provided, weve been able to play an important function in helping with global ILS market growth.
” For around three-quarters of a century, Bermuda based insurance coverage and reinsurance business have supplied crucial catastrophe risk capital to the world. Now, run the risk of capital can be found in lots of kinds and from many sources and Bermuda has positioned itself as a safe avenue and custodian for danger transfer and re/insurance activities.
” Our success at the BSX is testament to Bermudas innovative nature and its dedication to create a centre of excellence for the production, issuance, assistance and listing of ILS structures. While the BSX listing regulations talk to international best practices for transparency and disclosure, the BSX team regularly makes every effort to be business and engage with the marketplace to support and support the continuing development and development of ILS.
” At the BSX, we are pleased to continue to support the ILS asset class and we look forward to working carefully with market participants as the ILS sector progresses”
Since the end of 2021, the BSX plays host to a very substantial percentage of international ILS market activity.
If you consider that quotes of ILS, or alternative reinsurance, capital stand at somewhere in between $90 billion and $100 billion, including any caught ILS capital, the BSX is now house to well over half.
This is even more considerable when you consider that so much of the ILS markets activity is not even listed, being privately negotiated, typically bilaterally and without a requirement to have the resulting possession noted on an exchange.
With that in mind, it is safe to assume the BSX lists the majority of the ILS securities that currently have a listing.
Chief Compliance Officer James McKirdy provided some more visibility into the magnitude of the BSXs position in ILS, stating that 2021 activity, “Represents growth of 11% year-over-year for ILS securities noted in the year and a 26% increase in small value listed.
” At the end of 2021, the overall number of ILS-listed securities stood at 757, with a combined nominal value of $50.79 billion.”
Thats a huge figure, for what is still a specific niche market and the BSX has actually played an essential function in supporting the requirements of the ILS market through its advancement and development.
We anticipate seeing the BSX continue to innovate its offering to ILS markets, as it seeks to include even more worth.
BSX CEO Wojciechowski likewise discussed advancements at the BSX in 2021, “It was a pivotal year for BSX and our team, with our core listing organization ending the year at record levels despite the impact of COVID-19 on our capability to engage in conventional physical company development activity. BSX moved its administrative and industrial operations to a new area at Exchange House in Hamilton and executed significant upgrades to the technology infrastructure as we continued the combination with our parent, Miami International Holdings, Inc.
” The BSX commemorated its 50th anniversary in 2021 and we believe we have actually built a foundation for our next 50 years of development and development. What has actually become clear over the previous year is that the change in how we work, where we work and disruptors such as digital assets and DeFi have been sped up.
” Bermuda is positioning itself to become a worldwide leader in environment threat finance services offered its long history of supplying catastrophic danger coverage through innovative automobiles such as ILS. The BSX will continue to play a vital function in this location as the leading Exchange for global listing services for ILS securities.”

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