BSX Insurance Linked Listings Pass $7B Barrier

June 19, 2013

The volume of insurance-linked listings on the Bermuda Stock Exchange [BSX] has passed the $7 billion level for the first time.

The value of Insurance-Linked Securities [ILS], which include catastrophe bonds and reinsurance-linked investment funds, has grown by $1.25 billion or 21% so far this year and now stands at $7.249 billion.

A $52 million share offering from Blue Capital Global Reinsurance Fund as well as the issuance of six catastrophe bonds so far this year, has helped push the total of listings over the $7 billion mark.

BSX President and Chief Executive Officer Greg Wojciechowski said: “Listings of ILS instruments on the BSX have exceeded $7 billion which represents a new record for us. Bermuda has been a trusted partner to the global insurance and reinsurance industry for decades and the BSX is delighted to be part of continuing this tradition by lending our support to the growing ILS assets class.

“Bermuda is one of the three key risk capital centres in the world and has developed deep experience in supporting all aspects of global reinsurance business. It is clear that this foundation is being leveraged to support an ILS cottage industry that is developing rapidly in Bermuda.

“The BSX is committed to responding to the needs of our insurance clients and partners by delivering all aspects of exchange support, including price discovery and post trade services, and we are appreciative to the industry for its confidence in the Bermuda market.”

Mr Wojciechowski added that the momentum was being driven by the Bermuda Monetary Authority’s (BMA) revised regulations, which were published in 2009, which created the new designation of Special Purpose Insurer (SPI), which can be set up to issue ILS such as catastrophe bonds.

As the jurisdiction with the world’s third largest reinsurance market, Mr. Wojciechowski said Bermuda was “the natural place” for the convergence of the insurance and capital market industries.

He said: “Bermuda has served the global insurance industry for numerous decades. As the regulated exchange platform of the jurisdiction, we took note when investors increased their investment interest in insurance linked securities and undertook to do our part to provide an exchange platform that would help accelerate the development of the ILS asset class and help place Bermuda at the centre of the convergence of the two market segments which we have serviced for so long.”

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