Artex SAC issues $100m Bricolage private catastrophe bond

Artex Risk Solutions’ segregated account reinsurance transformer platform, Artex SAC Limited, has completed another new private catastrophe bond issuance, with a $100 million Artex SAC Limited – Bricolage Notes transaction placed privately with qualified investors.

This latest first private catastrophe bond arrangement of 2022 takes issuance of these more privately offered insurance-linked securities to roughly $490 million for the year so far, following on from a record year in 2021 for privately placed cat bonds and cat bond lites issues.

Artex’s SAC Limited structure is a Bermuda vehicle and using it the company facilitates private cat bond transactions for sponsors and investors.

The Artex SAC structure acts as a transformer of risks and a vehicle for securitization that issues notes, which can then be sold to either individual or groups of investors, depending on whether a transaction is syndicated or bilateral in nature.

This latest $100 million Bricolage private cat bond deal (also termed a cat bond lite) has now been completed and listed in Bermuda using the vehicle’s Artex SAC Limited ILS Note Program II.

This is the tenth transaction from Artex SAC Limited that we’ve listed in our Deal Directory.

The transaction saw Artex SAC Limited acting for the Segregated Account named “Bricolage” to issue one tranche of notes that have been placed with qualified institutional investors or insurance-linked securities (ILS) funds.

Sometimes these private placement cat bond deals can be bilateral, between a ceding company and single investor. But being $250 million in size it would make sense for the deal to have been privately placed with a group or club of investors and funds.

Artex SAC Limited has issued a $100 million tranche of principal-at-risk Bricolage notes..

The notes, which have been admitted to listing on the Bermuda Stock Exchange (BSX), all have maturity due at May 19th 2025, suggesting they could cover three US wind seasons perhaps, or a three years for another peril.

As ever, we make the assumption that a private cat bond or ILS issuance like this features notes linked to certain property catastrophe risks, most likely representing a securitisation of either an indemnity or industry loss triggered collateralised reinsurance or retrocession transaction.

If any more details emerge on the Artex SAC Limited – Bricolage Notes transaction we will update you.

You can track cat bond and related ILS issuance by year and type of transaction in this chart.

You can also view details of every private cat bond we’ve tracked by filtering our Deal Directory to see private ILS transactions only.