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.
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.
Hannover Re is one of the world’s leading reinsurers. It transacts all lines of property & casualty and life & health reinsurance and is present worldwide with more than 3,500 staff. German business of the Hannover Re Group is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior".
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