Resilience Re Ltd. (Series 1841A)

This is the third issuance of a private catastrophe bond from the Willis Towers Watson owned Resilience Re Ltd. platform this year, a $150 million single tranche of Series 1841A discounted zero coupon notes.

For this latest deal, Resilience Re Ltd. has issued a single $150 million tranche of Series 1841A discounted zero coupon notes, which have been placed with qualified investors and listed on the BSX as Section V – Insurance Related Securities. The notes are due April 8th 2019, suggesting they cover a one-year reinsurance arrangement from the April renewal.

The discounted zero coupon note structure used in this and other similar private ILS transactions benefits both the sponsor of the cat bond and the investors.

The sponsor can fund the reinsurance premium up front, as it would in a typical collateralized reinsurance arrangement, which also provides the investor a form of leverage and as a result can help to drive keener pricing and enhanced transactional efficiency for both sides.

Willis Towers Watson Securities will have acted as the lead structuring agent and bookrunner for this private cat bond, structuring and facilitating the deal between sponsor and investors, through the transformation of a reinsurance arrangement into a securitised cat bond note with secondary liquidity features.