Willis Re Securities and Willis Re have structured and placed €100 million of insurance-linked securities (ILS) for Achmea Reinsurance Company, the reinsurance arm of Dutch insurance group Achmea.
The cat bond Windmill II Re DAC is believed to be the first cat bond exposed to primary European insurance risk in 2020, It was upsized from an initial announcement size of €80 million and pricing at a spread of 4 percent, below the initial spread guidance.
The transaction provides Achmea Reinsurance with a single €100 million tranche of fully collateralised protection against European windstorm risk for a four-year period. It features an indemnity trigger on a per occurrence basis with terms mirroring the traditional reinsurance placement to ensure effective integration within the overall property catastrophe reinsurance program.
Quentin Perrot, head of ILS International at Willis Re Securities, said: “For the first time in 2020, a cat bond priced below the initial target range, demonstrating that cedants with a high quality and diversifying risk profile can achieve success in the cat bond market today.”
Maya Popovic-Biereth, regional director at Willis Re EMEA N/E, said: “The transaction demonstrates the cedant’s strategic utilisation of all the available sources of reinsurance capital and secures a multi-year capacity seamlessly integrated within their catastrophe programme.”
Willis Re Securities, Willis Re, Achmea Reinsurance, Windmill II Re DAC, Quentin Perrot, Maya Popovic-Biereth