Asagao VII – White Rock Insurance (SAC) Ltd.

This transaction is the seventh private catastrophe bond in the Asagao series of parametric Japanese earthquake deals issued using insurance and reinsurance broker Aon’s Bermuda domiciled segregated account company White Rock Insurance (SAC) Ltd.

his Asagao VII private catastrophe bond has been issued, at a size of JPY 6 billion, so a larger deal again, which is roughly US $40 million at the current exchange rate.

As mentioned, Japanese earthquake risks are expected to be the peril that features again, presumably being transferred to capital market investors on a parametric trigger basis, which has been the case with all of the Asagao cat bond deals.

Aon Insurance Managers is the insurance manager to the SAC vehicle so will have again assisted its client in getting this new Asagao VII private ILS deal to market, facilitating issuance of the roughly $40 million of Asagao VII notes using the White Rock structure to place the private insurance-linked securities (ILS) (or private catastrophe bond notes) with investors for an unknown Japanese catastrophe risk exposed cedent.

It’s expected that Aon’s Reinsurance Solutions broking team and likely also its ILS specialist unit Aon Securities ,will have been involved in this transaction as well.

White Rock Insurance (SAC) Ltd. has issued the ¥ 6 billion (JPY) of Principal At-Risk notes (which is roughly US $40m at the exchange rate), acting on behalf of its segregated account named T133 – Asagao VII.

We expect the notes will have been issued using the White Rock Insurance (SAC) Ltd. ILS Note Program, which is a program for the issuance of privately placed catastrophe bonds, or other ILS arrangements, as well as their offering and sale to institutional investors.

These new $40 million of Asagao VII notes are scheduled for maturity at July 25th 2025, we understand.