GC Securities, a division of MMC Securities LLC, acted as the structuring agent and bookrunner for a USD 150 million 144A catastrophe bond issuance for Black Kite Re Limited (Black Kite Re), a newly established special purpose insurer in Hong Kong, that ultimately benefits Peak Reinsurance Company Limited (Peak Re).
As part of the transaction, Peak Re has entered into a retrocession arrangement with Black Kite Re, providing multi-year risk industry insured loss protection against typhoons affecting Japan. The 144A catastrophe bond represents the first such instrument issued by a Hong Kong special purpose insurer.
“We are pleased to see that the transaction was able to attract significant investor interest, allowing for a (100%) upsize from the initial announced transaction size,” said Franz Josef Hahn, CEO of Peak Re. “Through continued partnership with global insurance-linked securities (ILS) investors, Peak Re can play an important role in developing the ILS market and building resilience in Asia and beyond.”
“Reinsurers are interested in the cat bond market as an efficient means to obtain risk transfer capacity,” said Cory Anger, Managing Director, GC Securities. “Catastrophe bonds provide tailored structures to sponsors, while investors are attracted to the predictability, transparency and robustness of the notes. Insurance-linked securities play a key role in helping (re)insurers and other sponsors address capital or risk transfer goals.”
GC Securities* complements Guy Carpenter’s reinsurance brokerage colleagues to extend the range of risk-transfer solutions and advisory services for clients. Our market-leading team serves as a single point of contact for clients worldwide for all aspects of insurance-linked securities and (re)insurance industry capital raising and mergers and acquisition.
In addition to the function fulfilled by GC Securities, Mercer Investments (HK) Limited acted as advisers and co-manager to Hong Kong investors. Guy Carpenter and Mercer are businesses of Marsh McLennan.
*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the United Kingdom by GC Securities, a division of MMC Securities Ltd., which is authorized and regulated by the Financial Conduct Authority. Securities or investments, as applicable, are offered in the European Economic Area by GC Securities, a division of MMC Securities (Ireland) Ltd., which is authorized and regulated by the Central Bank of Ireland, reference number C447471. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities LLC, MMC Securities Ltd., MMC Securities (Ireland) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh McLennan. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.