Artemis, a news, analysis and data media service, released an on-line article on 27 May, 2014, commenting on the Bermuda Stock Exchange (“BSX”) and the Insurance Linked Securities market. The release said, in part:
“The total volume of insurance-linked listings on the Bermuda Stock Exchange (BSX) reached a new high in recent days, with catastrophe bonds, insurance-linked securities and insurance linked investment funds on the BSX now totaling $12.43 billion. This is a new all-time high for the Bermuda Stock Exchange and demonstrates impressive growth considering the exchange only passed the $10 billion mark, for listed ILS and insurance linked vehicles, back in early April. In the space of just slightly more than six weeks the exchange has added over $2.4 billion to its ILS listing total, even though more than $1 billion of listed cat bond risk matured. Helping the BSX reach this new milestone are a number of recent cat bond issues, including the record $1.5 billion sized Everglades Re 2014-1, which replaced the previously listed and now matured $750m Everglades Re 2013-1. The most recently completed and listed cat bond which helped to take the BSX’s ILS listings over the $12 billion mark for the first time was the $750m Sanders Re 2014-1. Greg Wojciechowski, President and Chief Executive Officer of the BSX, told Artemis; “We are delighted the ILS platform that has been created in Bermuda with important input from local and international participants continues to deepen. The steady growth of ILS business in Bermuda is a testament to the comfort the market has in Bermuda’s ability to innovate, create and support important insurance solutions for its diverse international client base.” The volume of insurance linked listings at the BSX has risen at an impressive rate over the last year or so. At the start of 2013 the BSX was host to $5.81 billion of insurance linked listings. That number grew to $7.06 billion in May 2013, then increasing to $8.4 billion by mid-October 2013, reaching $9.161 billion by the 19th December before finishing 2013 at $9.713 billion. Insurance linked listings rose again to $10.09 billion at the end of Q1 2014 and now stands at $12.428 billion. Wojciechowski continued; “The emergence of the BSX as the centre of excellence for the listing of ILS vehicles is humbling and we look forward to working with the market to provide additional levels of stock exchange support. The BSX prides itself in listing not only Bermuda domiciled vehicles but also those from other countries, thus making the BSX an international stock exchange platform. We encourage international issuers to keep the BSX in mind for its listing needs.” There is further growth ahead for the BSX’s insurance linked, ILS and catastrophe bond listings, with another $300m likely to list from Zenkyoren’s soon to complete Nakama Re 2014-1 cat bond and $200m more to add from Allstate’s second Sanders Re takedown, Sanders Re 2014-2. That additional $500m will take the BSX’s insurance linked and ILS listings nearer to $13 billion in the next week. Wojciechowski added; “Bermuda’s decades of experience gives it a unique perspective and skill set that allows anticipation of changes in the market and clients’ needs. As competition accelerates, the market can rest assured that Bermuda will continue to leverage its deep experience to support the changes in the industry and to further innovate and support our clients requirement as they develop.” Total reinsurance-linked investment fund share classes (approximate): $514m Total insurance-linked listings on the BSX currently: $12.428 billion.”
