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GC Securities on their role as bookrunner on the Queen Street V Re cat bond


GC Securities, the capital markets arm of broker Guy Carpenter, have issued a press release which discusses their role as sole bookrunner on the recently completed Queen Street V Re Ltd. catastrophe bond which was issued for sponsoring reinsurer Munich Re. This fifth Queen Street cat bond from Munich Re completed recently, securing them a multi-year source of collateralized reinsurance cover on an industry loss and per occurrence basis for the peak perils of U.S. hurricane and European windstorm. Our story on the deals completion can be found here.

GC Securities, as bookrunner on the transaction, placed the $75m of cat bond notes, which provide three-year per occurrence protection to Munich Re against hurricanes in the United States and windstorms in Europe, utilizing a PCS county and line of business-weighted index trigger structure for U.S. hurricanes and a PERILS CRESTA-weighted index trigger structure for European windstorms, with a global group of investors.

The cat bonds risk profile shows an overall expected loss of 1.95%, 1.01% for U.S. hurricane and 0.94% for European windstorm.

Cory Anger, Global Head of ILS Structuring, GC Securities said; “This transaction provides the market with a differentiated trigger structure (relative to prior Queen Street transactions) that further refines the protection structure to Munich Re’s underlying exposures via a county-weighted PCS index for U.S. hurricanes. Investors and sponsors alike appreciate triggers based on the unbiased, post-event loss reports provided by entities like PERILS and PCS. The consistency of Munich Re’s use of the catastrophe bond market over the last year should provide increased financial flexibility and is a positive with investors.”

Chi Hum, Global Head of ILS Distribution, GC Securities added; “GC Securities is pleased to have been able to bring a global investor group in support of Queen Street V Re Limited. The breadth of investor interest in the book further underscores the depth of interest from the capital markets for property catastrophe risk. The success of Queen Street V and generally Munich Re’s Queen Street Program provides further evidence of the increasing importance and utility of integrating capital markets capacity as a core component of an effective enterprise risk management strategy.”

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