Log In

Reset Password
BERMUDA | RSS PODCAST

Insurance-linked securities surpass $7 billion mark on BSX

A $52 million share offering from Blue Capital Global Reinsurance Fund has pushed the rapidly expanding insurance-linked securities (ILS) instruments on the Bermuda Stock Exchange (BSX) beyond the $7 billion mark.

A BSX press release stated the value of the ILS instruments, which include catastrophe bonds and reinsurance-linked investment funds, has grown by $1.25 billion or 21 percent so far this year, and now stands at $7.249 billion.

BSX President and chief executive officer Greg Wojciechowski was quoted in the organisation’s press release as saying: “Listings of ILS instruments on the BSX have exceeded $7 billion which represents a new record for us.”

He explained that 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,” he said.

Mr Wojciechowski added that the momentum was being driven by the Bermuda Monetary Authority’s (BMA) revised regulations, 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.”

You must be Registered or to post comment or to vote.

Published June 20, 2013 at 9:00 am (Updated June 19, 2013 at 8:25 pm)

Insurance-linked securities surpass $7 billion mark on BSX

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon