Willis Re Securities completes €120m ILS for Covéa Mutual

Willis Re Securities has structured and placed €120 million of ILS to provide reinsurance capacity for Covéa Mutual Insurance Group, France’s largest domestic P&C insurance group.

Hexagon II Reinsurance, which was executed in collaboration with Willis Re, settled November 5 and provides Covéa with a single €120 million tranche of fully collateralised protection against windstorm and other weather-related events in France for four years.

The structure includes a per-occurrence indemnity trigger, with terms mirroring the traditional reinsurance placement, ensuring it can be integrated into the broader property catastrophe reinsurance program.

Quentin Perrot, head of sales international at Willis Re Securities, said: “Hexagon II Re is the first non-US cat bond transaction issued in the past nine months. The favourable closing conditions demonstrate investors’ strong appetite for Covéa natural catastrophic risk.”

Alkis Tsimaratos, managing director of Willis Re EMEA, said the transaction demonstrates how the traditional reinsurance market can work effectively with the catastrophe bond market to offer increased flexibility in reinsurance.

“Hexagon II Re offers a stable multi-year commitment at attractive terms, while integrating seamlessly in the broader reinsurance program of Covéa,” added Tsimaratos.