February 26, 2019

BSX lists first London-domiciled cat bond

Greg Wojciechowski, CEO of the BSX

Greg Wojciechowski, CEO of the BSX

The Bermuda Stock Exchange has listed its first London-domiciled catastrophe bond. The listing was sponsored by Estera Securities (Bermuda) Ltd.

The £75 million Baltic PCC Ltd Series 2019 Principal-At-Risk Variable Rate Notes were issued through the company’s protected cell 1 and are exposed to risks from acts of terrorism in covered parts of England, Wales and Scotland.

This transaction follows the growing trend of atypical risk structures and the movement away from pure catastrophe risks like hurricanes and earthquakes.

This is the second non-Bermuda domiciled cat bond to be listed on the BSX for 2019, following Ireland-domiciled Atmos Re DAC’s €45 million cat bond in January, also sponsored by Estera.

The BSX is already home to more than $30 billion of insurance-linked securities (ILS) with a record number of issuers listed on the Exchange in the last year. The BSX is internationally recognised and sits on the Board of Directors of the World Federation of Exchanges (WFE) and a recognised Stock Exchange by the UK HMRC, making it an attractive option for non-Bermuda domiciled Cat Bonds.

Greg Wojciechowski, chief executive officer of the BSX, said he was delighted to welcome Baltic PCC Ltd to listing.

“Baltic PCC Limited joins over 200 ILS structures that have chosen the BSX as their international listing venue of choice,” Mr Wojciechowski said.

“Baltic PCC Ltd’s listing also underscores the BSX commitment to providing world class listing services to the expanding global ILS market, as numerous ILS structures originate from locations other than Bermuda.”

Estera’s ILS team has been involved in more than $25 billion of ILS issuances to date, with the listing work being led by Sherman Taylor, associate director.

“Estera is proud of the key role it plays in Bermuda’s insurance/reinsurance industry”, Alison Dyer-Fagundo, managing director, said.


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