Nascent Re Ltd., a licensed reinsurance transformer operating under the Bermuda-based Nascent Group, recently completed the issuance of two additional series of preferred share private insurance-linked securities (ILS). The company issued $20 million for its Quinton segregated account and another $20 million for its Stevenage segregated account, bringing the total to $40 million in new securities.
Nascent Re Expands Insurance-Linked Securities Offerings with New Preferred Share Issuances
On September 24th, 2026, Nascent Re Ltd., a pivotal component of the Bermuda-based Nascent Group, successfully finalized two new preferred share private insurance-linked securities (ILS) series. Each series, designated for the Quinton and Stevenage segregated accounts, amounted to $20 million. These transactions signify a crucial development for Nascent Re, marking its third and fourth such issuances to date, all structured as preferred shares. This financial mechanism likely facilitates various collateralized reinsurance or private ILS agreements. Nascent Group, renowned for its technology-driven approach to insurance management, ILS servicing, and reinsurance transformation, leverages Nascent Re as its primary transformer entity. This vehicle is specifically designed to enable reinsurers and investors to conduct collateralized reinsurance transactions efficiently, utilizing a sophisticated risk transformation platform. While these are the latest public issuances, it is understood that Nascent Re has historically supported numerous similar collateralized reinsurance or ILS arrangements. Earlier in the year, in March, Nascent Re made its initial foray into listed insurance-linked securities with a €10 million tranche of OFS Re Series 2026-001 preferred shares. This was followed by a significant $23.5 million preferred share issuance in August, allocated to a segregated account named Telford, which remains the largest single issuance from the structure to date. The newly issued Quinton preferred shares are set to mature on December 31st, 2026, while the Stevenage preferred shares will mature on December 15th, 2026. This timing suggests these instruments could be structured to cover the wind season. All $40 million of these preferred shares from the Quinton and Stevenage segregated accounts were privately placed with qualified investors and are now officially listed as insurance-linked securities on the Bermuda Stock Exchange (BSX). Unlike principal-at-risk notes, the preferred share structure suggests an underlying quota share reinsurance or retrocessional arrangement, rather than an excess-of-loss model. Consequently, these particular transactions have not yet been categorized as private catastrophe bonds within the cat bond Deal Directory. As a Class 3 licensed Bermuda insurer, Nascent Re Ltd. plays a critical role in bridging the gap between reinsurance and retrocessional risk and capital. It connects sponsors with investors and ILS fund managers, effectively transforming re/insurance related risks into marketable securities for its clients, thereby providing a direct conduit to the capital markets.
This latest move by Nascent Re underscores the evolving landscape of the insurance-linked securities market. The continuous innovation in structuring financial instruments, such as preferred shares for collateralized reinsurance, offers greater flexibility and access to capital for re/insurers. This not only enhances risk transfer mechanisms but also diversifies investment opportunities for qualified investors, reinforcing Bermuda's position as a leading hub for ILS innovation.
