Aon Securities, Aon’s investment banking division, has launched Randolph Re, a new private placement catastrophe bond platform.
Randolph Re broadens the scope of Aon’s ILS offering, providing clients with a dedicated platform to execute private placement transactions above $25 million in issuance size.
The private placement catastrophe bonds will be issued via an SPV called White Rock Insurance Bermuda. Aon Insurance Managers provides insurance management services.
Randolph Re offers clients the benefits of syndicated collateralised cover with a streamlined execution and documentation process. The private placement catastrophe bonds are tradeable in the secondary market, supported by Aon Securities’ trading desk.
Paul Schultz, CEO of Aon Securities, called Randolph Re “an evolution in [Aon’s] private placement of catastrophe bonds.” It will be cost effective, with fast and efficient execution, facilitating ILS usage by a much broader range of clients, he said.
“Randolph Re enables smaller deal sizes, meaning that transactions can be integrated into various parts of re/insurance programs, allowing significant flexibility for clients. Randolph Re fits neatly into the continuum between bilateral collateralised reinsurance and more broadly syndicated catastrophe bonds,” added Schultz.
Aon Securities, Randolph Re, Paul Schultz