Aon Benfield Securities Places $250 Million Cat Bond for QBE’s VenTerra Re

January 7, 2014

Aon Benfield Securities, the investment banking division of global reinsurance intermediary and capital advisor Aon Benfield, announced that it has successfully underwritten and placed a $250 million catastrophe bond issued by VenTerra Re Ltd, a Bermuda-based special purpose insurer.

“VenTerra Re Ltd. provides subsidiaries of QBE Insurance Group Limited (QBE) with $250 million of multi-year collateralized protection against U.S. and Australia earthquakes and Australia cyclones on an indemnity basis for a period of three years commencing January 1, 2014,” said the announcement. “VenTerra Re Ltd. is the first-ever catastrophe bond that has secured coverage for Australian perils for a primary insurance company on an indemnity basis.”

Aon Benfield Securities acted as Joint Structuring Agent and Sole Bookrunner on the transaction.

Jim Fiore, Chief Reinsurance Officer at QBE, indicated that the insurer was “very happy with the coverage and terms secured via VenTerra Re Ltd., the first catastrophe bond sponsored by our company and which was received very well among investors.”

Aon Benfield Securities CEO Paul Schultz commented: “We are pleased to have successfully placed VenTerra Re Ltd. on terms attractive to QBE, with coverage substantially similar to what QBE has been able to secure in the traditional reinsurance market. VenTerra Re Ltd. was very well received by investors, who welcomed the addition of a new sponsor to the market.”

The bulletin noted: “The VenTerra Re Ltd. $250,000,000 Series 2013-1 Class A Principal At-Risk Variable Rate Notes were priced at 3.75 percent above the yield on the underlying money market fund collateral. The Notes are rated BB(sf) by Standard & Poor’s and Risk Management Solutions, Inc. provided the risk analysis for the transaction.”

Source: Aon Benfield Securities

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