Artex Risk Solutions, through its Bermuda-based transformer entity, Artex Axcell Re, has successfully completed two new private catastrophe bond issuances, collectively valuing $35 million. These insurance-linked securities (ILS) notes, known as the Harrogate notes and Jedburgh notes, signify a strategic move in the private risk transfer market, enhancing capital deployment and investor engagement within the specialized realm of catastrophe risk.
The two distinct transactions, a $20 million Harrogate notes offering and a $15 million Jedburgh notes offering, were both facilitated by Artex Axcell Re (Bermuda) Limited under its ILS Note Program II. The Harrogate notes were issued on behalf of segregated account PI0056, while the Jedburgh notes originated from segregated account PI0058. A notable feature of both issuances is their identical maturity date of December 15, 2025, which points to a deliberate linkage, whether through the underlying risk portfolio, the participating investors, or the ILS manager involved. This synchronized maturity could imply that these notes provide coverage for specific seasonal risks, such as the Atlantic hurricane season, or serve as transformed industry-loss warranty (ILW) hedges.
The Artex Axcell Re platform has a well-established history of facilitating diverse reinsurance-related risk transfers, including various forms of privately placed ILS. This includes a spectrum of instruments, from collateralized reinsurance arrangements to bespoke private catastrophe bonds. The current transactions highlight the continued utility and adaptability of such transformer facilities in connecting risk originators with sophisticated institutional investors.
Following their issuance, both the Harrogate and Jedburgh private cat bond notes have been privately placed with qualified institutional investors and are now officially listed on the Bermuda Stock Exchange (BSX). The observed numerical gap in the segregated account identifiers (PI0056 and PI0058) suggests the possibility of additional, as-yet-undisclosed issuances from Artex Axcell Re, indicating further activity within this specific program.
Typically, private ILS or cat bond transactions of this nature are understood to cover property catastrophe reinsurance or retrocession risks. Given their relatively short term to maturity by the end of the year, it is highly plausible that these notes are designed to provide essential coverage leading into and throughout the active hurricane season. These latest additions to the private cat bond market underscore a significant trend, pushing the total annual issuance of such deals tracked by industry observers towards the $400 million mark for 2025. This trajectory suggests that the current year is poised to be considerably more dynamic for private ILS arrangements compared to previous periods.
The successful placement of these private catastrophe bond notes by Artex Axcell Re reflects a robust and evolving market for tailored risk transfer solutions. These transactions not only provide capital to cedents but also offer investors unique opportunities to engage with catastrophe risk in a structured and transparent manner. The increasing volume of such deals signifies growing confidence and innovation within the insurance-linked securities sector, demonstrating its critical role in diversifying risk and enhancing financial resilience across the global insurance landscape.
