Hannover, 2 July 2014:
Hannover Re has completed a new transaction as part of its extended insurance-linked securities (ILS) activities. The company has transferred named storm risks for the Texas Windstorm Insurance Association (TWIA) to the capital markets.
The assumed risks are limited to the state of Texas. The amount of capital made available by institutional investors is USD 400 million. GC Securities, a division of MMC Securities Corp., was responsible for structuring and placing of this catastrophe bond, which matures in approximately three years. "With this transaction Hannover Re has underscored its long-standing expertise in the field of alternative risk transfer and leveraged the opportunity to generate low-risk and stable margins", Chief Executive Officer Ulrich Wallin noted.
Since the placement of the world's first risk securitisation by Hannover Re in 1994 the company has realised numerous innovative transactions in both non-life and life/health reinsurance.