Hannover Re has completed two new transactions as part of its insurance-linked securities (ILS) activities and transferred storm risks for two US-based associations to the capital markets.
Hannover, 3 June 2015:
Hannover Re has completed two new transactions as part of its insurance-linked securities (ILS) activities. The company has transferred storm risks for the US-based Massachusetts Property Insurance Underwriting Association (MPIUA) and Texas Windstorm Insurance Association (TWIA) to the capital markets.
The amount of capital made available by institutional investors is USD 300 million in the case of MPIUA and USD 700 million for TWIA; this is the largest catastrophe bond issued to date in 2015. GC Securities, a division of MMC Securities Corp., served as sole structurer and bookrunner.
"We are delighted that in coordination with our partners we have again successfully transferred insurance risks to the capital markets; this underscores Hannover Re's long-standing expertise in the field of alternative risk transfer. In so doing, we are able to support our clients while at the same time generating low-risk and stable margins for our company", Chief Executive Officer Ulrich Wallin noted. Hannover Re had already transferred storm risks to the capital markets for TWIA in the previous year.
Since the placement of the world's first risk securitisation by Hannover Re in 1994 the company has realised numerous innovative transactions in both property & casualty 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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