Willis Re Securities completes €100 million ‘Azzurro Re II DAC’ catastrophe bond for UnipolSai
Willis Re Securities, in collaboration with Willis Re, has successfully structured and placed €100 million of insurance-linked securities (ILS) for UnipolSai Assicurazioni S.p.A, a leading Italian insurer. The Azzurro Re II DAC Series 2020-1, settled on July 10, offers UnipolSai protection against earthquake risks for three and a half years. This transaction marks the first Solvency II compliant cat bond program, enhancing the ability of UnipolSai to issue future cat bonds. The firm aims to stabilize its reinsurance costs amid uncertain market conditions.
- Successfully structured €100 million of insurance-linked securities for UnipolSai.
- Introduced the first Solvency II compliant cat bond program, increasing future issuance flexibility.
- Provides UnipolSai with fixed-price protection against earthquake risk, aiding budget planning.
- None.
LONDON, July 22, 2020 (GLOBE NEWSWIRE) -- Willis Re Securities in collaboration with Willis Re, the reinsurance division of Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today announced that it has structured and placed
Azzurro Re II DAC (“Azzurro Re II”) Series 2020-1, which settled July 10, provides UnipolSai with a single
Azzurro Re II is the first multiple-arrangement special purpose vehicle authorised by the Central Bank of Ireland for cat bond transactions. This will provide UnipolSai with increased flexibility to come back to market for future cat bond issuance through a “fast track” approval process.
Quentin Perrot, head of ILS International at Willis Re Securities, said: “We are honoured to have supported UnipolSai in their third 144A catastrophe bond transaction. For the first time, a cedant has put in place a Solvency II cat bond program, allowing for a fast and efficient process for future cat bond transactions, in compliance with the Solvency II regulation. This demonstrates the long-lasting commitment of UnipolSai to engage with the ILS community. As usual, the level of dedication of the UnipolSai team was key to obtaining this very good result.
"With this new issuance, Willis Re Securities maintains its unrivalled leadership position in the structuring and placement of European ILS transactions.”
Alkis Tsimaratos, Head of EMEA W/S at Willis Re, said: “We are delighted to have assisted UnipolSai in their latest ILS transaction with Azzuro Re II. This is providing a three-and-a-half-year diversifying capacity at a fixed price, accessing ILS capital for their key natural peril, Italian earthquake, and integrating this with their main catastrophe reinsurance programme. UnipolSai has reconfirmed their strategy of developing a long-term partnership with ILS alongside their key reinsurers, whilst providing an element of stability to their future reinsurance budgetary planning ahead of unprecedented uncertainty in future market conditions. The unique setup of Willis Re Securities fully embedded in Willis Re allowed UnipolSai to get seamless advice on all aspects of this risk transfer solution which was successfully executed as planned.”
About Willis Re Securities
Willis Re Securities, with offices in New York, London and Sydney, provides advice to companies involved in the insurance and reinsurance industry on a broad array of mergers and acquisition transactions as well as capital markets products, including acting as underwriter or agent for primary issuances, operating a secondary insurance-linked securities trading desk and engaging in general capital markets and strategic advisory work. Willis Re Securities is a trade name used by Willis Securities, Inc., a licensed broker dealer authorized and regulated by FINRA and a member of SIPC, Willis Towers Watson Securities Europe Limited (Registered number 2908053 and ARBN number 604 264 557), an investment business authorized and regulated by the UK Financial Conduct Authority.
About Willis Re
One of the world's leading reinsurance brokers, Willis Re is known for its world-class analytics capabilities, which it combines with its reinsurance expertise in a seamless, integrated offering that can help clients increase the value of their businesses. Willis Re serves the risk management and risk transfer needs of a diverse, global client base that includes all of the world's top insurance and reinsurance carriers as well as national catastrophe schemes in many countries around the world. The broker's global team of experts offers services and advice that can help clients make better reinsurance decisions and negotiate optimum terms. For more information, visit https://www.willistowerswatson.com/en-GB/Solutions/reinsurance.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas – the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
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FAQ
What was announced in the July 22, 2020 press release regarding WLTW?
How does the cat bond issued for UnipolSai benefit WLTW?
What is the significance of the Solvency II compliance in the cat bond transaction?
When was the Azzurro Re II DAC Series 2020-1 settled?
