Bermuda Stock Exchange hits record US$9.7b in ILS listings

By added on 07/01/2014

Nearly US$10 billion in insurance-linked securities (ILS) were listed on the Bermuda Stock Exchange (BSX) at the end of 2013, reports the Royal Gazette.

The figure represents a new record — a more than 100 percent increase in listings, up to 77 from 38 last year — with the US$9.7 billion value up 67 percent on the 2012 total of US$5.8 billion.

And the total market capitalisation of the BSX, excluding collective investment vehicle listings, stood at more than US$428 billion, of which nearly US$1.7 billion represented the domestic market.

Over the year more than 10 million shares with a value of US$50.1 million were traded, down from the 12.7 million shares traded the previous year, although the value then was US$38 million.

BSX president and chief executive Greg Wojciechowski said: “The BSX ended the year on an extremely positive note. Two important developments were the continued growth in our insurance-linked securities business and the work that we have accomplished in supporting international small and medium enterprise (SME) companies capital raising and listings.

“The BSX ended the year with a record number of ILS listed issues assisting Bermuda to firmly establish itself as a centre of excellence for the creation, listing and servicing of the ILS asset class.

“In respect of SMEs, interest in listing and trading in their listed shares remain on the rise.”

Mr Wojciechowski added: “I am delighted with the place we find ourselves as we begin 2014 and have every confidence that the hard work undertaken at the BSX and in Bermuda to create and sustain a reputable and respected commercial and regulatory environment will continue to drive commercial development and assist us in adding new lines of business and further elevate Bermuda's position among the major global financial centres.”

The Royal Gazette BSX Index closed the year 1201.05 — 10.1 percent higher than the previous year, although well off the pre-recession peak of 5382.

Mr Wojciechowski said: “The accomplishments of the BSX to date and in particular this year resulted from the hard work of a dedicated team of stock exchange professionals that manage and operate the exchange on a daily basis.

“The BSX team clearly understands the importance of a modern and solid domestic capital market and its contribution to the health of a domestic economy.

“The BSX team is committed to ensuring that Bermuda's stock exchange platform remains the leader among its peers internationally while providing global capital market access and solid support for the continued development of Bermuda's domestic capital market.”

BSX chief compliance officer James McKirdy said that listings grew by 32 securities over the year “in challenging global economic conditions”.

He added: “In particular, new listings grew by 81 securities, including 42 insurance-linked securities with a capitalisation value of US$4.6 billion.

“There was also growth in international equities and debt listings, while listings of collective investment vehicles declined modestly.”

At year end, the BSX boasted 665 securities on its list.

Included in the new listings were ones coming from Armor Re, Galileo Re, Loma Re, MetroCat Re, Nakame Re, Sanders Re, Tradewynds Re and VenTerra Re.

The BSX added that other significant milestones in the year were the listings of two multi-million dollar Bermuda Government Bonds, as well as new firms like Capital Reinsurance Holdings, Global Smart Cities, Polo Resources, Energy Solutions and the BIAS Global Portfolios.

And Mr Wojciechowski said the new Nasdaq X-stream trading platform, launched last April, had provided the BSX with “world class trading technology and strengthening the BSX's commitment to the development of Bermuda's domestic market, while underscoring its ability to provide global capital market support in and from Bermuda”.

He added the new technology made the BSX “the most powerful trading venue in the Caribbean and offshore markets as defined by performance, latency and throughput”.