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

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

Tape-record catastrophe bond and associated insurance-linked securities (ILS) market issuance in 2021 has assisted 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 very active year and record issuance of catastrophe bonds in 2021, as our report documents, the Bermuda Stock Exchanges (BSX) ILS specific listings, which include disaster bonds, home loan insurance-linked securities (ILS), reinsurance sidecar notes and some noted ILS fund classes rose considerably to 757 noted ILS securities by the end of the year.
Much more impressive is the truth the BSXs feline bond and ILS securities listings have now exceeded $50 billion, in terms of capital outstanding, for the very first time.
Its one of the greatest years of ILS listings development for the BSX, as the record levels of cat bond issuance helped to drive the Exchanges listings worth much higher over the course of the year.
BSX Chief Compliance Officer James McKirdy explained to Artemis, “2021 was a favorable 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 new ILS securities being noted in a single year is a very remarkable number and shows the BSXs continued significance as the house of ILS and feline bond listings.
Too is the $19.77 billion of newly listed ILS in 2021, which is a substantial figure considering cat bonds plus home loan ILS issuance just came to simply over $20 billion during the year (there are some reinsurance sidecar notes included, of course).
Despite emerging ILS residences increasingly hosting some ILS and feline bond issuance activity, the BSX continues to dominate the Exchange listing of any insurance-linked securities (ILS) released anywhere in the world.
For example, the BSX has the listing for the very first disaster bond issued in Hong Kong and most of the feline bonds and ILS issued in Singapore are likewise listed in Bermuda.
Thats testament to the hard work and effort of the BSX team over the last decade, in engaging with the international ILS market and ensuring its listing offering is both easy to utilize, quickly accessible and cost-efficient for companies and company.
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 after that its innovation, in terms of regulation and products offered, weve had the ability to play an important function in helping with global ILS market growth.
” For around three-quarters of a century, Bermuda based insurance and reinsurance business have actually supplied crucial disaster risk capital to the world. Now, risk capital can be found in numerous kinds and from numerous sources and Bermuda has actually placed itself as a safe avenue and custodian for risk transfer and re/insurance activities.
” Our success at the BSX is testament to Bermudas ingenious nature and its dedication to develop a centre of excellence for the production, issuance, assistance and listing of ILS structures. While the BSX listing policies speak with worldwide best practices for openness and disclosure, the BSX group regularly strives to be commercial and engage with the marketplace to support and nurture the continuing development and development of ILS.
” At the BSX, we are happy to continue to support the ILS possession class and we look forward to working closely with market participants as the ILS sector evolves”
As of completion of 2021, the BSX plays host to a really substantial proportion of international 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 home to well over half.
This is much more considerable when you consider that so much of the ILS markets activity is not even listed, being independently negotiated, often bilaterally and without a requirement to have the resulting asset listed on an exchange.
With that in mind, it is safe to assume the BSX lists most of the ILS securities that presently have a listing.
Chief Compliance Officer James McKirdy offered some more presence into the magnitude of the BSXs position in ILS, saying that 2021 activity, “Represents development of 11% year-over-year for ILS securities noted in the year and a 26% boost in small worth noted.
” 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 played an essential 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 looks for to include even more value.
BSX CEO Wojciechowski also talked about developments at the BSX in 2021, “It was a critical year for BSX and our group, with our core listing organization ending the year at record levels despite the impact of COVID-19 on our capability to participate in conventional physical business development activity. BSX moved its industrial and administrative operations to a brand-new area at Exchange House in Hamilton and executed significant upgrades to the technology infrastructure as we continued the combination with our moms and dad, Miami International Holdings, Inc.
” The BSX commemorated its 50th anniversary in 2021 and we think we have constructed a foundation for our next 50 years of innovation and growth. 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 accelerated.
” Bermuda is positioning itself to become an international leader in climate threat finance services provided its long history of offering catastrophic danger protection through ingenious vehicles 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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