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Resilience Re in $88m private zero coupon cat bond issuance


Resilience Re Ltd., the private catastrophe bond issuance platform owned and operated by insurance and reinsurance broker Willis Towers Watson, has completed its first issuance of the new year, with an issuance of $88 million zero coupon Resilience Re Ltd. (Series 1912A) notes.

In 2018, the Willis Towers Watson Securities operated Resilience Re platform issued four private cat bond or private insurance-linked securities (ILS) transactions, totaling almost $300 million of risk capital issued.

This new and first transaction for 2019 is the twelfth in total from the Resilience Re platform that we have listed in our catastrophe bond Deal Directory.

A single $88 million tranche of Series 1912A notes, structured as zero coupon, have been issued by special purpose insurer (SPI) Resilience Re Ltd., providing a sponsor with fully collateralized property catastrophe reinsurance coverage and investors with access to the risks in a securitised form, with secondary liquidity features.

The $88 million of zero coupon notes are due for maturity as of January 8th 2021, so this transaction may provide as much as two years of reinsurance or retrocession cover for the cedent.

The $88 million of notes issued by Resilience Re Ltd. have been privately placed with qualified investors and then listed on the BSX as Section V – Insurance Related Securities.

Details are scarce, as ever with this latest private Resilience Re cat bond, but we assume the sponsor is benefitting from efficient access to collateralized reinsurance or retrocession cover from the capital markets for losses from certain property catastrophe reinsurance exposures, while the investor is benefiting from an asset that meets a more liquid investment mandate.

Willis Towers Watson Securities will have provided the service roles of lead structuring agent and bookrunner for this private cat bond, enabling the sponsor and investors to transact, transforming a reinsurance arrangement into a securitised cat bond note with secondary liquidity also a possibility.

You can read all about this $88 million Resilience Re Ltd. (Series 1912A) private cat bond and every other catastrophe bond, including private as well as public 144A, in the Artemis Deal Directory.

This transaction will not be fully included in all of our catastrophe bond and ILS market statistics due to the lack of available information.

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