Willis Towers Watson Securities acts as lead structuring agent for the first reinsurance sidecar domiciled in France
Willis Towers Watson Securities, the securities affiliate of Willis Re, acted as lead structuring agent for French reinsurer CCR Re on the first ever Insurance-linked Securities (ILS) instrument governed by French law.
157 Re will assume a quota share of CCR Re’s worldwide property catastrophe portfolio, providing it with fully collateralized capacity to achieve its target of diversified and profitable organic growth. This strategic instrument will also provide CCR Re with full Solvency II regulatory credit and give it access to a new competitive and agile investor base.
157 Re takes the form of a mutual securitization fund (fonds commun de titrisation (FCT)) which has traditionally been used for financial assets securitization only. 157 Re has been licensed by the French supervisory authority (Autorité de Contrôle Prudentiel et de Résolution). The French tax authorities have also provided formal guidance in respect of the tax treatment of the operation for the investors. France Titrisation is acting as the management company and BNP Paribas Securities Services, the custodian on the transaction.
Alkis Tsimaratos, managing director for EMEA W/S, Willis Re, said: “We’re delighted to have supported CCR Re in its strategic growth objectives through this innovative sidecar, which is the first ILS instrument to use the French FCT regime. This was achieved by bringing together the combined knowledge and expertise of our embedded ILS and reinsurance teams. Our unique client focus and ILS offering further affirms our privileged position in the European ILS market.”
Quentin Perrot, senior vice-president at Willis Towers Watson Securities comments: “157 Re is testament of the great professionalism of the CCR Re team at all levels of the transaction and the innovative push from the top management. For this first transaction to use the French FCT regime covering insurance risks, we have been impressed with the commitment and responsiveness displayed by all the parties involved throughout the structuring and placement process. This makes the French FCT regime highly attractive, in particular for European based cedants who can benefit from the Solvency II regulatory credit for their ILS transactions”.
About Willis Re
One of the world’s leading reinsurance brokers, Willis Re is known for its world-class analytics capabilities, which it combines with its reinsurance expertise in a seamless, integrated offering that can help clients increase the value of their businesses. Willis Re serves the risk management and risk transfer needs of a diverse, global client base that includes all of the world’s top insurance and reinsurance carriers as well as national catastrophe schemes in many countries around the world. The broker’s global team of experts offers services and advice that can help clients make better reinsurance decisions and negotiate optimum terms. For more information, visit willisre.com.
About Willis Towers Watson Securities
Willis Towers Watson Securities, with offices in New York, London, Hong Kong and Sydney, provides advice to companies involved in the insurance and reinsurance industry on capital markets products, including acting as underwriter or agent for primary issuances, operating a secondary insurance-linked securities trading desk and engaging in general capital markets and strategic advisory work. Willis Towers Watson Securities is a trade name used by Willis Securities, Inc., a licensed broker dealer authorized and regulated by FINRA and a member of SIPC (“WSI”), Willis Towers Watson Securities Europe Limited (Registered number 2908053 and ARBN number 604 264 557), an investment business authorized and regulated by the UK Financial Conduct Authority (“WTW Securities Europe”) and Willis Towers Watson Securities (Hong Kong) Limited, a corporation licensed and regulated by the Hong Kong Securities and Futures Commission (“WTW Securities (HK)”).
About Willis Towers Watson
Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas – the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com
Annie Roberts: +44 20 3124 7080