Windmill I Re Ltd. (Series 2017-1)

Achmea is a large Dutch insurance group, owning a number of brands across property, casualty, life, health and pensions. The firm also owns Achmea Reinsurance Company NV, a group reinsurer which predominantly retro cedes risk from the Achmea group to the reinsurance market as well as offering some reinsurance to selected third parties.

Windmill I Re Ltd. is a Bermuda domiciled special purpose insurer. The listing of the €40m tranche of Series 2017-1 notes on the BSX occurred at the end of June 2017, under Section V as Insurance Linked Securities.

We assume this is a renewal of the 2013-1 transaction from the same special purpose vehicle.

So we assume the notes cover €40m of European windstorm risk and are structured on an indemnity trigger basis, like the 2013-1 cat bond transaction.

The cover afforded by Windmill I Re 2017-1 runs for a three-year risk period and the notes are due to mature on the 5th July 2020.

The ceding company is assumed to be Achmea Reinsurance Company NV, like the 2013-1 deal, ceding risk from the Achmea group Dutch non- life companies property portfolios to Windmill I Re where the risk was transformed and issued as securities to investors in this 2017-1 issuance.

Aon Securities likely structured the cat bond transaction and placed the deal, as they did Achmea’s 2013 transaction. The Windmill I Re 2017-1 cat bond was a private offering, likely to a small group of investors, although Aon Benfield Securities will have arranged the sale of the notes.