Willis Towers Watson Securities said it has structured and placed EUR 90 million of insurance-linked securities (ILS) for Covea Mutual Insurance Group, France’s largest domestic property/casualty insurance group.
The transaction was executed in collaboration with Willis Towers Watson’s reinsurance business, Willis Re.
Hexagon Reinsurance DAC, which closed Dec. 15, provides Covea with two €45 million tranches of fully collateralized protection against windstorm risk in France for a four-year period. The structure features an indemnity trigger on an annual aggregate basis with terms mirroring the traditional reinsurance placement to ensure effective integration within the overall property catastrophe reinsurance program.
“This is a unique transaction as it is the first time a European catastrophe bond has supported capacity at the bottom of a traditional reinsurance program, as well as the first time a European indemnity-trigger catastrophe bond was placed on an annual aggregate basis,” said Bill Dubinsky, head of ILS at Willis Towers Watson Securities.
Alkis Tsimaratos, managing director of Willis Re EMEA W/S said the transaction also demonstrates that attachment levels usually reserved for traditional structures in Europe are equally attracting catastrophe bond investors
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