The Mangrove Risk Solutions private insurance-linked securities (ILS) platform operated by Marsh McLennan and reinsurance broker Guy Carpenter has issued a $6.25 million private catastrophe bond deal.This is the fifth private catastrophe bond issuance, or cat bond lite, we’ve seen come from the Mangrove Risk Solutions Bermuda Ltd.platform.Private catastrophe bond issuance is running behind trend in 2025, compared to recent years.

Before this new deal, there were .That compares to $319 million of private cat bonds issued and tracked by Artemis in the first-half of 2024 and $247 million in H1 2023.This is the first deal from the Mangrove Risk Solutions platform since October 2024.

That last issuance from the structure, a $14.35 million , matured just over one week ago.Mangrove Risk Solutions Bermuda Ltd.was launched as a new private ILS and cat bond lite platform early in 2024, when .

Mangrove Risk Solutions is a Class 3 Bermuda registered insurance company that can be used for issuance of private catastrophe bonds and other insurance-linked securities (ILS) offerings, having been originally .As a platform for the private issuance of series of insurance-linked securities (ILS), Mangrove Risk Solutions makes issuance of 4(2) or 4(a)(2) securities more simple, and efficient for cedents or those wanting to transform reinsurance risks into securities, which are the typical formats for private catastrophe bonds.While giving Marsh McLennan and Guy Carpenter a platform to help their clients gain access to sources of capital markets reinsurance capacity, or facilitate the transformation and securitization of reinsurance deals for ILS fund managers and investors.

and you can also analyse .This latest private cat bond, or series of insurance-linked securities (ILS) issued by Mangrove Risk Solutions Bermuda Ltd.is a Series 2025-D2 arrangement.

Mangrove Risk Solutions Bermuda Ltd.has issued $6.25 million of discounted zero-coupon participating notes, on behalf of one of its segregated accounts named 2025-D2.The notes have been sold to investors and the resulting collateral will underpin a reinsurance or retrocession agreement that the segregated cell and trust are subject to.

The $6.25 million of Series 2025-D2 private cat bond notes that Mangrove has issued are due for maturity on April 10th 2026, we understand. The notes have been privately placed with qualified investors.It’s not clear if this is a reinsurance or retrocession deal from the April renewals perhaps, that has taken time to be transformed and securitized, or a fresh deal with a less than one year term.As with every private ILS or cat bond deal, until we learn more details we assume these cover property catastrophe reinsurance or retrocession risks.

With private cat bonds, in some cases the risks have been transformed to enable an ILS fund or investor to source an asset that meets a catastrophe bond mandate, so a transformation from a traditional reinsurance or retro contract.Or, they can see a cedant accessing capital market investors for protection in a more efficient manner than undertaking a full 144A cat bond issuance process.Private ILS or cat bond lite arrangements normally fit into one of a number of use-cases.

Either as a straight collateralised reinsurance or retro cover for a carrier, that has been transformed and securitised, to be assumed by a single ILS fund or investor, or a small group of funds/investors, or, ILS fund-to-fund transactions (hedging), or the transformation of a specific risk transfer arrangement, such as an industry-loss warranty (ILW).Guy Carpenter’s specialist capital markets and investment banking unit GC Securities will have structured the transaction and acted as a bookrunner or placement firm for this Mangrove Risk Solutions private ILS transaction.While Marsh Management Services will have acted as the insurance manager for the structure itself, as has been seen with all the previous issuances under the Mangrove and former Isosceles name.

Being a Bermuda structure, the notes have been listed on the Bermuda Stock Exchange (BSX), which is again an enhancement for liquidity and Appleby acted as the listing sponsor.With this latest $6.25 million private catastrophe bond from Mangrove Risk Solutions, .As we said, that is running well-behind last year and 2023 at this time, perhaps reflecting the fact more sponsors are graduating to full 144A catastrophe bonds now, or simply meaning fewer of these private deals are coming to light.

.2017 was the record year for private cat bonds tracked by Artemis, at just .Read more about this new  issuance of private catastrophe bonds in our extensive cat bond Deal Directory.

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