BSX nears 50 percent of global public ILS issuance


ILS outstanding at the Bermuda Stock Exchange (BSX) topped $8.5 billion this year, with $3.2 billion of new ILS issued in 2013, as interest in the island’s alternative offering continues to gain momentum.

That is the good news from Greg Wojciechowski, president and CEO of the BSX, who said that the exchange has gained considerable traction in the ILS space, with significant growth having been achieved over the past four years.

Wojciechowski said that Bermuda is the obvious home for such deals, with the regulatory environment, jurisdictional focus and a “burgeoning cottage industry in ILS”, helping to set the island apart from the competition.

Further cementing the island’s position is the quality and transparency instilled by the BSX, with Wojciechowski indicating that his team works hard to provide “sunshine” around its ILS deals and the wider market. He said that he is hoping to see a more organised secondary market in ILS emerge, adding that the BSX is more than capable of playing host to growth in alternative market trading.

“ILS and the rise of alternative capital is no flash in the pan. It isn’t the Wild West,” said Wojciechowski; rather he was confident that the market and the BSX can expect to see still further growth in 2014. “I don’t have a crystal ball, but barring significant downward pressure, I would expect our current growth trend to continue.”

Touching upon private deals, Wojciechowski said that as a regulator he would obviously like to see more of those in the public market, but added that in certain instances—for example when only a limited number of players are involved—such deals made sense. However, he referred back to the “sunshine around deals” that organisations such as the BSX are looking to instil into the market, adding that generally greater transparency should be pursued in the alternative space.

Wojciechowski is also in Monte Carlo promoting Convergence 2013, ILS Bermuda’s inaugural networking event for those in the convergence sector due to be held in Bermuda in November. He said that “timing is right for such an event”, with the intention being to create a Rendez-Vous for the convergence market in Bermuda and internationally.

BSX, ILS, reinsurance, insurance, Bermuda

Bermuda Re