Bermuda reinforces ILS dominance

Jonathan Kent, Business Editor

Published Oct 4, 2018 at 8:00 am (Updated Oct 3, 2018 at 9:42 pm)

ILS central: about three-quarters of the world's outstanding ILS are listed on the Bermuda Stock Exchange

Bermuda reinforced its position as the world leader in insurance-linked securities as issuance soared in the first quarter of this year.

There was no sign of growth slowing in the burgeoning market as 17 new bonds totalling $4.3 billion, were issued globally in the period, up 53.6 per cent from the first quarter of last year.

ILS issued from Bermuda represented a 74.5 per cent share, or $24.8 billion, of the $33.3 billion of total outstanding capacity at the end of March, according to the Bermuda Monetary Authority’s ILS Market Report.

A total of 104 foreign ILS, comprising 171 tranches, are listed on the BSX with an aggregate nominal value of $25.8 billion. About $1.4 billion, or 5.4 per cent, of these deals were issued by vehicles domiciled in Ireland and the US.

The report noted that other countries with significant insurance securitisation activity in this area include the Cayman Islands, which has $4.2 billion, or 12.5 per cent, of issuance, and Ireland, which has $1.8 billion, or 5.5 per cent.

• The full report is available under the heading of Related Media on this webpage

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