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Cat bond lite issuance hits $1.17bn for 2017

A flurry of deals at the end of last year took total cat bond lite issuance to $1.17bn for 2017, up over 400 percent from 2016's $212.81mn.

Hannover Re's Kaith Re platform issued two cat bond lites in late December, according to the Bermuda Stock Exchange (BSX).

The $27mn Seaside Re 2018-3 is due on 15 January 2019, while the $9.9mn LI Re 2017-1 notes run to 10 April 2019.

The Seaside Re 2018-3 deal followed the $20mn Seaside Re 2018-1 cat bond lite issued earlier in December.

The recent Seaside Re transactions come almost a year after a three-tranche $86.5mn Seaside Re cat bond lite was issued in January 2017.

The LI Re 2017-1 notes were exactly the same size as the LI Re 2016-2 transaction, which covered California earthquake perils.

Artex also listed two cat bond lites totalling $83.8mn on the BSX at the end of last year.

The two late December deals included a $33.6mn Dodeka XIV cat bond lite from Twelve Capital, as well as $50.2mn of GX notes from an unknown sponsor. Both were issued using the Artex SAC transformer.

Dodeka XIV was the third Dodeka issuance to be completed by Twelve Capital last year, bringing the manager's total volume of such deals transacted in 2017 to $62.7mn.

The sponsor of the $50.2mn of GX notes is not known. Artex also issued $50.2mn of DX notes and $8.3mn of EX notes last year.

Nearly half of the private issuances were from Willis Towers Watson's Resilience Re platform, which issued $460mn of cat bond lites this year.

In January, QBE used the platform to raise $187mn of collateralised reinsurance protection. This was followed in April by a $173mn issuance from Chubb.

 

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