Willis Towers Watson Securities, the investment banking business of Willis Towers Watson (NASDAQ: WLTW), today announced that it has structured and placed EUR 90 million of insurance-linked securities for Covea Mutual Insurance Group, France’s largest domestic P&C insurance group.
The transaction was executed in collaboration with Willis Towers Watson’s reinsurance business, Willis Re.
Hexagon Reinsurance DAC (“Hexagon”), which settled 15 December, 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.
Bill Dubinsky, Head of ILS at Willis Towers Watson Securities, said: “We are proud to have supported Covea in its inaugural catastrophe bond transaction. Investors were eager to support the transaction. Hexagon diversifies Covea’s sources of reinsurance capacity with competitive pricing.
Alkis Tsimaratos, Managing Director of Willis Re EMEA W/S said: “We are delighted at the multiple results achieved in this transaction. The transaction also demonstrates that attachment levels usually reserved for traditional structures in Europe are equally attracting catastrophe bond investors.
“Once again, the combined expertise of Willis Re and Willis Tower Watson Securities was a key differentiator in providing leading advice to our client on the design and execution of their risk transfer strategy.”