Willis Completes $200 million ‘Golden State Re’ Cat Bond for State Fund

Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings, announced it has structured and placed a $200 million catastrophe bond transaction for the California State Compensation Insurance Fund. The Golden State Re Ltd. transaction is the first cat bond designed exclusively to protect a portfolio of workers’ compensation exposures.

The transaction, which closedon Dec. 8, and expires in early 2015, provides the State Fund with $200 million of multi-year, fully collateralized protection against workers’ compensation claims as a result of U.S. earthquakes. Coverage is on a per-occurrence basis and the transaction features a modeled loss trigger which provides the State Fund with a relatively rapid payout post-event.

Willis Group through its subsidiaries delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world