Willis Re Securities in collaboration with Willis Re has announced the successful placement of a €100 million insurance-linked securities (ILS) programme for European windstorm risk.
The programme has been structured in behalf of Achmea Reinsurance Company (Achmea Re), the reinsurance arm of Dutch insurance group Achmea.
Windmill II Re DAC (Windmill), which settled June 22, provides Achmea Re with a single €100 million tranche of fully collateralised protection against European windstorm risk until 2024. The structure features an indemnity trigger on a per occurrence basis with terms mirroring the traditional reinsurance placement to ensure effective integration within the overall property catastrophe reinsurance program.
The transaction, which is the first cat bond exposed to primary European insurance risk in 2020, was upsized from an initial announcement size of €80 million and pricing at a spread of 4%, below the initial spread guidance.
Quentin Perrot, Head of ILS International, Willis Re Securities, explained: “We are proud to have supported Achmea Reinsurance in its inaugural 144A catastrophe bond transaction. For the first time in 2020, a cat bond priced below the initial target range, demonstrating that cedants with a high quality and diversifying risk profile can achieve success in the cat bond market today. The dedication of the Achmea Reinsurance team throughout this project played a key role to ensure this great result. With this new issuance, Willis Re Securities maintains its unrivalled leadership position in the structuring and placement of European ILS transactions.”
Maya Popovic-Biereth, Regional Director, Willis Re EMEA N/E added: “Windmill II Re was a natural step forward in Achmea Re’s relationship with the ILS marketplace which has now matured into a partnership with a wide panel of ILS investors.
“The transaction demonstrates the cedant’s strategic utilisation of all the available sources of reinsurance capital and secures a multi-year capacity seamlessly integrated within their catastrophe program.”