LONDON, 1 March 2019- Willis Towers Watson Securities, the securities arm of Willis Re, acted as Lead Structuring Agent and Sole Bookrunner on a €45 million catastrophe bond for UnipolSai Assicurazioni S.p.A ('UnipolSai'), the multi-business insurance company of the Unipol Group. Atmos Re DAC delivers pioneering coverage against severe weather related perils in Italy to UnipolSai.
Atmos Re provides UnipolSai with €45 million of fully collateralised protection against atmospheric phenomena, snow pressure and flood risks in Italy (including Vatican City and San Marino Republic) for three years. Atmos Re includes an indemnity trigger on an annual aggregate basis with an event cap of €24 million and an event deductible of €1 million. This trigger is designed to deliver protection against a series of small and medium sized events falling below the traditional per occurrence property cat reinsurance program. The transaction was structured and placed by Willis Towers Watson Securities. Munich Re acted as Co-Manager. Towers Watson (Bermuda) acted as independent modelling agent on the transaction.
Atmos Re brings an innovative earnings protection for non-peak perils in the Insurance-Linked Securities (ILS) market going into 2019. The final design underscores the value in robust dialogue with investors.
In conjunction with the Atmos Re placement, Willis Re placed a €45m reinsurance layer sitting immediately below the Atmos Re-backed layer. This placement attracted a diversified panel of traditional reinsurers and the coverage had the exact same characteristics as the Atmos Re-backed layer, but with a risk period of one year. The overall Atmos program was designed to maximize the interests of both sets of capacity providers at the risk return level they are most comfortable with and to ensure optimal size and price available to UnipolSai.
Alkis Tsimaratos, Managing Director, Head of EMEA West/South, Willis Re said: 'The Atmos Re program symbolises the agility of UnipolSai to use all sources of reinsurance capacity available in the market to achieve its reinsurance protections. It brought to the ILS market a pioneering non-peak aggregate earning volatility cover, closer to the original risk and on new perils. In particular Atmos Re was adjusted to fit the current appetite of both traditional reinsurers and capital market investors. This further demonstrates how both markets can collaborate, leveraging on our embedded ILS capabilities within Willis Re, for the benefit of both UnipolSai and its business partners.'
Marc Guy Victor Sordoni, Head of Reinsurance, UnipolSai, said: 'With the Atmos program, UnipolSai will be protected against frequency of retention of non-peak peril natural catastrophic events, reducing the volatility of our financial results. We are pleased to have brought a transaction to the market which optimizes the appetite of capital market investors and traditional reinsurers, and extends the range of perils and structures that ILS investors can offer on our program. This is in line with our long term strategy to build sustainable relationships with this market as an alternative way to access reinsurance capacity. We thank our trusted advisors Willis Re and Munich Re for their dedication and assistance throughout the course of this transaction. The success of Atmos Re could not have been achieved without their help.'
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 www.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.