Willis Capital Markets & Advisory Acts as Sole Bookrunner for $75 Million "Queen Street VII Re" Cat Bond Transaction
Deal is Sole Structured by Munich Re, the World's Largest Reinsurer
London, UK (PRWEB) November 02, 2012
Willis Capital Markets & Advisory (WCMA), the insurance industry investment banking arm of Willis Group Holdings (NYSE: WSH), has acted as sole bookrunner on a $75 million ‘Queen Street VII Re' catastrophe bond transaction which was co-placed by Munich Re Capital Markets and sole structured by Munich Re, the world's largest reinsurer.
The transaction, which closed Wednesday and expires in April 2016, provides Munich Re with $75 million of multi-year, fully collateralized protection against U.S. hurricane and European wind exposures. The structure features a county and line of business weighted PCS trigger and CRESTA-weighted PERILS trigger on a per occurrence basis.
The catastrophe bond market has been active throughout 2012 and the current market outlook remains very encouraging. Total non-life issuance to date in 2012 exceeds $4 billion and this year is expected to see the greatest new issuance volume since 2007. Risk spreads have tightened significantly in recent months as a result of investor appetite and capacity, as well as a perceived softening in reinsurance rates. This may be an ideal time for existing and potential cat bond sponsors to consider whether to access this market with a new issuance.
Tony Ursano, CEO, WCMA, said: “We are delighted to have acted as Sole Bookrunner for Munich Re's successful Queen Street VII issuance. This transaction further demonstrates the strong investor demand at present for risk in catastrophe bond form. WCMA remains ready and able to structure and execute catastrophe bond transactions for our clients.”
Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at http://www.willis.com
Forward Looking Statements
We have included in this document ‘forward-looking statements'. All statements, other than statements of historical facts that address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements. Although we believe that the assumptions underlying these statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in forward-looking statements, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.
All the securities referred to herein having been sold, this announcement is a matter of record only. This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.
Willis Capital Markets and Advisory is a trade name used by Willis Securities, Inc., a member of the Willis Group and a registered broker-dealer with the U.S. Securities and Exchange Commission and member of FINRA and SIPC. This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy, or, except with respect to an accompanying confirmation of transaction sheet, as a confirmation of terms of the purchase or sale of, any security. The information contained herein is as of this date only, is subject to change and does not contain all information necessary to adequately evaluate an investment in any financial instrument. Information contained in this communication may not reflect information known to other employees in any other business areas of Willis Group and its affiliates.
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