28 March 2019ILS

CCR Re sets up first France-domiciled reinsurance sidecar

In a development sure to catch the eye of the Bermuda insurance-linked securities (ILS) market, CCR Re has set up the first reinsurance sidecar domiciled in France, marking the first ILS vehicle governed by French law.

157 Re, which will start from April 1, will assume a 25 percent quota share of CCR Re's worldwide property cat portfolio, providing the reinsurer with fully collateralised capacity.

Furthermore, CCR Re suggested the vehicle will provide it with full Solvency II regulatory credit and give it access to a new competitive investor base.

157 Re is the first ILS instrument governed under French law, and takes the form of a mutual securitisation fund. It has been licensed by the French supervisory authority.

Willis Towers Watson Securities acted as the structuring agent for 157 Re, France Titrisation as management company and BNP Paribas Securities Services as custodian. Linklaters acted as transaction counsel, and Clyde & Co, acted as counsel to CCR Re on reinsurance matters.

“By creating and sponsoring 157 Re, the first ever French insurance linked securities instrument, CCR Re’s teams have confirmed their innovative skills and mindset, as well as their commitment to promote the Paris financial market place attractiveness and development," said Bertrand Labilloy, chairman and CEO at CCR Re.