Neon has set up NCM Re, a so-called protected cell company, which has issued a $72 million (£53 million) collateralised deal, it said in a statement.
Rules introduced late last year to allow the formation of UK protected cell companies for the issuance of ILS are designed to enable Britain to compete in the growing sector.
Catastrophe bonds and other ILS are typically tied to natural catastrophes such as hurricanes. They offer high yields but investors lose their principal if a specified catastrophe loss is triggered.
They offer an alternative to traditional reinsurance and have attracted investors such as pension funds and high net worth individuals because of their high yield.
Bermuda is the leading player in ILS but other European centres include Dublin and Gibraltar.
(Reporting by Carolyn Cohn; editing by Jason Neely)