A brand new roughly US $4 million personal disaster bond has been issued, Artex Axcell Re (Series FE0001), and the notes of the issuance are denominated in Japanese Yen, suggesting it covers disaster perils in that nation and sure supplies a capital markets backed supply of reinsurance to an unknown Japanese sponsor.
The personal cat bond, or cat bond lite, has been issued by the Artex Axcell Re (Bermuda) Restricted transformer and cell facility, which is operated by Artex Danger Options and has been frequently used for transacting and issuance of personal insurance-linked securities (ILS) preparations, from collateralized reinsurance to non-public cat bonds.
Artex Axcell Re (Bermuda) Restricted, below its ILS Observe Program II, has issued JPY 600 million (roughly US $4 million) in Sequence FE0001 notes.
The personal cat bond notes have a due date of April twenty eighth 2025, so their protection probably runs into that month, which aligns with some reinsurance preparations for cedents in Japan.
We perceive this personal cat bond transaction may very well have been accomplished a while in the past, however has solely now come to gentle when the notes had been listed on the Bermuda Inventory Trade (BSX) yesterday.
Given the denomination of the personal cat bond notes being in Japanese Yen, we assume they are going to cowl a Japanese peril, probably property disaster in nature, for an unknown Japanese sponsor or entity energetic there.
The JPY 600 million of personal cat bond notes had been privately positioned with certified institutional buyers.
As with all personal ILS or cat bond offers that we hear about, till we study extra particulars we assume these cowl a property disaster reinsurance or retrocession danger, on this case in Japan.
With personal cat bonds, the dangers are sometimes remodeled to allow an ILS fund or investor to supply an asset that meets a disaster bond mandate, so changing them from a standard reinsurance or retro contract to one thing extra suited to cat bond funds.
Or, they will merely be organized so a cedant can entry capital market buyers for cover in a extra environment friendly method than endeavor a full 144A cat bond issuance course of.
Personal ILS or cat bond lite preparations usually match into certainly one of a variety of use-cases, both a re/insurer or different entity accessing protection from the capital markets, with the dangers assumed by a single ILS fund or investor, or a small group of funds/buyers, or, they will symbolize ILS fund-to-fund transactions (hedging), or the transformation of a particular danger switch association, resembling an industry-loss guarantee (ILW), right into a cat bond technique appropriate format.
You may view particulars on each personal cat bond we’ve tracked within the Artemis Catastrophe Bond Deal Directory. Use the filters to view solely personal cat bonds (filter by kind).
You can too track private catastrophe bond issuance by year in this interactive chart.
We’ve added this roughly $4 million Artex Axcell Re (Series FE0001) personal cat bond transaction to the Artemis Deal Directory, and what knowledge factors we’ve on the association might be included in our catastrophe bond and ILS market statistics.
