Willis platform issues new $63m Resilience Re 1711A private cat bond

by Artemis on February 10, 2017

Another private catastrophe bond has been issued through the platform owned by insurance, reinsurance and capital markets broker and advisory Willis Towers Watson, a $63 million Resilience Re Ltd. (Series 1711A) transaction.

This is the second Resilience Re private cat bond coming out of the Willis owned platform so far this year, after a $187 million Resilience Re Ltd. (Series 1712) was completed and sold to investors in January.

Willis Capital Markets & Advisory (WCMA), the investment banking, catastrophe bond and insurance-linked securities (ILS) expert unit of the broker, launched its Resilience Re Ltd. private cat bond platform to offer clients a way to transfer reinsurance risks to capital market investor capacity with lower friction.

This new $63 million Resilience Re 1711A private cat bond is the fifth on the Willis private cat bond platform we’ve seen and listed in our Deal Directory.

The transaction saw a single $63 million Series 1711A tranche of discounted zero-coupon participating notes issued by Resilience Re Ltd. and admitted for listing on the Bermuda Stock Exchange (BSX) Section V Insurance Related Securities, with the notes placed with qualified investors

As with the majority of privately placed catastrophe bond transactions, we assume that the Resilience Re 1711A notes cover property catastrophe reinsurance risks, given the dominance of those perils in the ILS and collateralised reinsurance market, but details of the exact nature of this transaction are unavailable at this time.

Traction continued to pick up for private catastrophe bonds, as investors and cedents see the benefit in being able to access reinsurance risks in securitised form in an efficient, low friction manner.

Willis Capital Markets & Advisory will have played the joint roles of structuring agent and bookrunner for this deal, enabling the ceding company and investor to transform a reinsurance arrangement into a securitised cat bond note with secondary liquidity possible thanks to the listing as well.

Resilience Re helps sponsors to access ILS investors, and ILS funds or investors to invest in reinsurance or industry loss warranty (ILW) contracts in a securitised and liquid form, so meeting many investment mandates which aren’t always being supplied by the main 144A cat bond market today.

We will update you should any further information about the sponsor or underlying perils featured in this new Resilience Re deal become available.

You can read all about this Resilience Re Ltd. (Series 1711A) private cat bond and every other catastrophe bond, private and public 144A, transaction in the Artemis Deal Directory. It will not be fully included in all of our catastrophe bond and ILS market statistics due to a lack of available information.

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