Another private catastrophe bond transaction has been issued using the Willis Towers Watson owned Resilience Re Ltd. platform, a $52.6 million Resilience Re Ltd. (Series 1811A) transaction, that sees collateralized reinsurance being sourced from capital market invetsors for an unknown sponsor.
Willis Towers Watson’s Resilience Re Ltd. private catastrophe bond issuance platform has gained impressive traction and this is the second deal to come out of it this year and the ninth in total that we have listed in our catastrophe bond Deal Directory.
As ever, full details of this latest private Resilience Re cat bond are not available, but we assume the transaction sees a sponsor benefitting from efficient access to collateralized reinsurance cover from the capital markets against losses from certain property catastrophe reinsurance exposures.
For this latest deal, Resilience Re Ltd. has issued a single $52.6 million tranche of Series 1811A 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 January 9th 2019, suggesting they cover a one-year reinsurance arrangement from the start of this year.
The discounted zero coupon note structure used in this and other similar private ILS transactions benefits both the sponsors and the investors.
The sponsor can fund the reinsurance premium up front, as it would in collateralized reinsurance arrangements, giving the investor a form of leverage, which 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.
It will not be fully included in all of our catastrophe bond and ILS market statistics due to the lack of available information.