We’ve learned of a new $25 million Eclipse Re Ltd. (Series 2025-2A) private catastrophe bond arrangement, which is the first issuance from the Eclipse Re platform that we have reported on this year.
But that aligns with the use of private catastrophe bonds in general, as these have not come to market in as large numbers as recent years through 2025 so far.
Including this new $25 million Eclipse Re Series 2025-2A private cat bond issuance, we have now tracked $267.75 million of private insurance-linked securities (ILS) from this and similar platforms so far this year.
You can view details about every private cat bond issuance we’ve tracked by flitering our extensive cat bond Deal Directory.
As usual, with these private insurance-linked securities (ILS) deals, limited information is available to us and so we make the assumption it will provide coverage for property catastrophe reinsurance or retrocessional risks for unknown cedents.
Eclipse Re Ltd. is a Bermuda domiciled special purpose insurer (SPI) and segregated account platform and it is owned and operated by insurance-linked securities (ILS) market facilitator and service provider Artex Capital Solutions.
Eclipse Re is used for issuing private catastrophe bonds to help sponsors access the capital markets efficiently and also provides a function as a risk transformation structure, operating on behalf of ILS fund managers and investors.
Eclipse Re transforms collateralized reinsurance or retrocession arrangements into investable notes, with features that are more similar to a catastrophe bond, so fully-securitized and with secondary transferability as an option. It can also be used as an efficient and lower-cost cat bond issuance platform, for insurers, reinsurers or other sponsors with smaller deal sizes where economies of scale may not warrant a full Rule 144A issuance.
In this case, Eclipse Re Ltd. has issued a $25 million tranche of Eclipse Re Ltd. (Series 2025-2A) notes, which we presume cover some type of property catastrophe reinsurance or retrocessional perils for an unknown cedent.
The $25 million of Series 2025-2A notes have been issued on behalf of Eclipse Re’s Segregated Account EC0070 and the notes have a final maturity date of March 31st 2026.
Given their maturity date, we expect the $25 million of Series 2025-2A notes represent the securitization of a one year or less duration reinsurance or retrocession arrangement by Eclipse Re, potentially a transaction from some point between the April and mid-year renewals that has taken some time to come to light.
The notes issued by Eclipse Re have been privately placed with qualified investors and listed on the Bermuda Stock Exchange (BSX).
As ever, we make the assumption that the issuance features a reinsurance or retrocession arrangement that has been transformed using the Eclipse Re structure, to create and issue a series of investable, securitized catastrophe bond notes, typically for an ILS fund manager or investor portfolio.
We don’t know what the underlying trigger(s) or peril(s) are for private catastrophe bonds like this, but we assume they will be some kind of property catastrophe related risk.
The proceeds from the sale of the $25 million of private cat bond notes from this 2025-2A series of notes issued by Eclipse Re will have been used to collateralize a related reinsurance or retrocession contract, with funds held in a trust, enabling the risk transfer and the creation of investable catastrophe-linked securities.
You can analyse private cat bond issuance by year through accessing this chart, where you can split our tracked catastrophe bond and related ILS issuance by type of arrangement (Rule 144A property cat, Rule 144A covering other perils, or private cat bonds), using the key.
Analyse private catastrophe bond issuance by year using our interactive chart.
You can view details of every private cat bond we’ve tracked by filtering our Deal Directory to see private ILS transactions only.
All of our catastrophe bond market charts and visualisations are up-to-date and include data on new cat bond transactions as they settle.
