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

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

Tape catastrophe bond and related insurance-linked securities (ILS) market issuance in 2021 has helped the Bermuda Stock Exchange (BSX) to increase the worth its listings of cat bond and ILS notes by 26% during the year.Thanks to another really active year and record issuance of disaster bonds in 2021, as our report files, 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 significantly to 757 noted ILS securities by the end of the year.
Even more impressive is the reality the BSXs feline bond and ILS securities listings have now surpassed $50 billion, in regards to capital outstanding, for the first time.
Its one of the most significant years of ILS listings development for the BSX, as the record levels of cat bond issuance helped to drive the Exchanges listings value much greater throughout the year.
BSX Chief Compliance Officer James McKirdy explained to Artemis, “2021 was a positive year for the Exchange. The Insurance Linked Securities (ILS) market continued to grow, with the number of ILS securities listings increasing from 253 in 2020 to 281 in 2021, with a combined small worth of $19.77 billion compared to $15.77 billion in 2020.”
281 brand-new ILS securities being noted in a single year is an extremely remarkable number and shows the BSXs ongoing importance as the house of ILS and cat bond listings.
So too is the $19.77 billion of freshly listed ILS in 2021, which is a substantial figure considering cat bonds plus home mortgage ILS issuance just pertained to just over $20 billion throughout the year (there are some reinsurance sidecar notes included, of course).
Despite emerging ILS domiciles progressively hosting some ILS and feline bond issuance activity, the BSX continues to dominate the Exchange listing of any insurance-linked securities (ILS) provided anywhere in the world.
For example, the BSX has the listing for the first catastrophe bond released in Hong Kong and many of the feline bonds and ILS issued in Singapore are also noted in Bermuda.
Thats testament to the effort and effort of the BSX group over the last years, in engaging with the international ILS market and ensuring its listing offering is both simple to use, affordable and easily accessible for issuers and company.
Greg Wojciechowski, BSX President and Chief Executive Officer (CEO), commented to us in an interview, “Thanks to Bermudas early innovation in being an early mover in insurance-linked securities (ILS) and then its development, in terms of policy and items used, weve had the ability to play a crucial role in facilitating international ILS market growth.
” For around three-quarters of a century, Bermuda based insurance and reinsurance companies have actually offered important disaster threat capital to the world. Now, risk capital comes in lots of kinds and from many sources and Bermuda has placed itself as a safe conduit and custodian for risk transfer and re/insurance activities.
” Our success at the BSX is testament to Bermudas ingenious nature and its commitment to produce a centre of quality for the production, issuance, assistance and listing of ILS structures. While the BSX listing regulations speak with global best practices for transparency and disclosure, the BSX team regularly strives to be industrial and engage with the market to support and nurture the continuing development and development of ILS.
” At the BSX, we are thrilled to continue to support the ILS asset class and we eagerly anticipate working carefully with market individuals as the ILS sector progresses”
As of completion of 2021, the BSX plays host to an extremely considerable proportion of global ILS market activity.
If you consider that quotes of ILS, or alternative reinsurance, capital stand at someplace between $90 billion and $100 billion, consisting of any trapped 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 noted, being privately negotiated, often bilaterally and without a requirement to have the resulting asset noted on an exchange.
With that in mind, it is safe to presume the BSX notes the majority of the ILS securities that presently have a listing.
Chief Compliance Officer James McKirdy provided some more presence 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% boost in nominal worth noted.
” At the end of 2021, the total number of ILS-listed securities stood at 757, with a combined small worth of $50.79 billion.”
Thats a huge figure, for what is still a niche market and the BSX has played a crucial function in supporting the requirements of the ILS market through its development and growth.
We look forward to seeing the BSX continue to innovate its offering to ILS markets, as it seeks to include much more worth.
BSX CEO Wojciechowski likewise talked about advancements at the BSX in 2021, “It was a pivotal year for BSX and our team, with our core listing company ending the year at record levels despite the impact of COVID-19 on our capability to engage in traditional physical company advancement activity. BSX moved its industrial and administrative operations to a new place at Exchange House in Hamilton and executed substantial upgrades to the technology infrastructure as we continued the combination with our parent, Miami International Holdings, Inc.
” The BSX celebrated its 50th anniversary in 2021 and our company believe we have actually constructed a foundation for our next 50 years of innovation and development. What has ended up being clear over the past year is that the change in how we work, where we work and disruptors such as digital possessions and DeFi have actually been sped up.
” Bermuda is positioning itself to become a worldwide leader in environment threat finance options provided its long history of offering catastrophic hazard protection through ingenious lorries such as ILS. The BSX will continue to play an important role in this area as the leading Exchange for global listing services for ILS securities.”

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