4th Nov 2013 15:44
LONDON (Alliance News) - Catlin Group Ltd has sponsored a USD300 million catastrophe bond transaction structured and placed by Willis Capital Markets & Advisory, the capital markets and advisory business of Willis Group Holdings.
Insurance and reinsurance broker Willis said Monday the transaction, which closed on October 30, provides Catlin with USD300 million of fully collateralised protection against US Named Storms, US and Canada earthquakes and Europe windstorms for a three-year risk period.
"We are committed to continuing to build our insurance-linked securities franchise and assist sponsors in accessing capital markets capacity. The level of investor demand for the deal is a testament to the markets? continued appetite for a diverse range of catastrophe risk," Tony Ursano, Willis Capital Markets & Advisory, said in a statement.
Catlin Insurance Co Ltd in Bermuda is the legal entity responsible for the deal.
Earlier Monday, Hiscox, a nonlife insurance competitor to Catlin, said it expects to deploy over USD250 million in collateralised reinsurance funds at the start of 2014.
Insurance-linked securities, whose values are largely driven by insurance loss events and have seen increasing convergence between reinsurance and the capital markets, have attracted attention from Lloyd's of London Chairman John Nelson, who in September warned of the need to make sure that the opportunities of new non-traditional capital entering reinsurance should always be priced appropriately to the risk to which it is attached.
Catlin shares were Monday quoted at 509.50 pence, down just under 1.0%.
By Samuel Agini; [email protected]; @samuelagini
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