€200 million deal highlights
growth of catastrophe bonds for non-US perils - Azzurro Re first ever catastrophe
bond to cover Italian earthquake and ensuing perils as primary risk
BOLOGNA, July 20th, 2015
- UnipolSai Assicurazioni S.p.A. (“UnipolSai”),
the multi-business insurance company of the Unipol Group and Italian leader in
non-life business, together with Willis Capital Markets & Advisory
(“WCMA”), part of Willis Group Holdings plc (NYSE:WSH), the global risk
advisory, re/insurance broking, and human capital and benefits firm, have confirmed the completion of the re/insurance
industry’s first indemnity-trigger catastrophe bond primarily for Italian earthquake
risk, Azzurro Re I Limited (“Azzurro Re”).
Sponsored by
UnipolSai, Azzurro Re was structured and placed by WCMA in collaboration with
Willis Group’s reinsurance division, Willis Re. It provides UnipolSai, one of
the largest buyers of Italian earthquake cover, with €200 million of fully
collateralized protection against earthquake risk and ensuing perils in Italy
and neighbouring countries for three-and-a half years. The structure features
an indemnity trigger on a per occurrence basis and mirrors the traditional
reinsurance terms to ensure integration within the overall property catastrophe
reinsurance program of UnipolSai.
Azzurro Re is the
first catastrophe bond for UnipolSai. It also marks the first catastrophe bond
exposed to European risk issued in 2015.
Investors welcomed the
transaction. More than twenty supported the transaction, which was
oversubscribed and upsized from the initial €150 million. The notes pay an
annual risk spread of 2.15%, a record low for a first time European primary
insurance catastrophe bond sponsor of first event indemnity-trigger
principal-at-risk notes.
Commenting on the deal, Marco Sordoni, Head of
Reinsurance of UnipolSai, said: “Azzurro Re is an important
transaction for UnipolSai and supports our long-term development strategy
across the international markets as well as in Italy. We are also proud to have
sponsored Azzurro Re as an industry-first transaction for the catastrophe bond
market.
“UnipolSai is
establishing relationships with investors as part of our long-term strategy to
access the spectrum of global capital markets should our future reinsurance capacity
needs increase. With the current low penetration rate of earthquake insurance
in Italy and wider international markets, we have proactively sponsored this transaction
in anticipation of our potential growth in exposure. We value the reduction in
post-event counterparty risk from the fully collateralized cover and we
continue to work on other innovative risk transfer solutions as we to look to develop
our international capabilities.”
Tony Melia, CEO of Willis Re International, said:
“Azzurro Re demonstrates UnipolSai’s leadership in the international
reinsurance market as well as Willis’s leadership position in structuring
complex and advanced risk transfer solution for our international clients. We
are delighted to have supported UnipolSai in its effort to engage successfully
with insurance-linked securities investors as part of their long-term
development strategy.
“Azzurro Re is a clear
demonstration of the continued trend for diversified reinsurance buying, with
buyers restructuring their reinsurance programs to better integrate ILS
capacity, ultimately to improve performance and efficiency gains for the
benefit of policyholders as well as shareholders. We look forward to delivering
future results alongside WCMA across new risks and territories.”
William Dubinsky, Managing Director and Head of ILS,
WCMA, said: “This transaction demonstrates the
continued investor appetite for catastrophe risk and highlights the strong interest
for investment in diversifying perils. Alongside Willis Re we look forward to continue
broadening the scope of products available to investors and also look forward
to bringing the buyers of reinsurance more choice to diversify their sources of
reinsurance capacity.”
-ENDS-
About UnipolSai Assicurazione S.p.a.
UnipolSai Assicurazioni S.p.A. is an insurance leader
in Italy for non-life business and especially in MTPL. Also heavily involved
on the life insurance side, UnipolSai S.p.a., with more than 10 million insured
client, is clearly considered as one of the main Italian insurance group with a
premium turnover @ 31-12-2014 around 16 billion €uro (split as follow: 8,4 for
non-life and 7,6 in life). The company is currently operating through the
largest agent network counting 3.000 local agent’s office and more than 6.000
subagents. Aside to the traditional distribution network, UnipolSai is also involved
in the bancassurance distribution model thanks to the agreement with Unipol
Banca and the joint-venture with Popolare Vita (Gruppo Banco Popolare), BIM
Vita (Banca Intermobiliare) and Incontra Assicurazioni (Gruppo Unicredit).
About Willis Capital Markets & Advisory
Willis Capital Markets &
Advisory, with offices in New York, London and Hong Kong, provides advice to
companies involved in the insurance and reinsurance industry on a broad array
of mergers and acquisition transactions as well as 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 Capital Markets &
Advisory (“WCMA”) 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 Capital Markets & Advisory Limited (Registered number 2908053 and
ARBN number 604 264 557), an investment business authorized and regulated by
the UK Financial Conduct Authority (“WCMAL”) and Willis Capital Markets &
Advisory (Hong Kong) Limited, a corporation licensed and regulated by the Hong
Kong Securities and Futures Commission (“WCMAL (HK)”).
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
Willis
Group Holdings plc is a global risk advisory, re/insurance broking, and human
capital and benefits firm. With roots dating to 1828, Willis operates today on
every continent with more than 18,000 employees in over 400 offices. Willis offers
its clients superior expertise, teamwork, innovation and market-leading
products and professional services in risk management and transfer. Our experts
rank among the world’s leading authorities on analytics, modeling and
mitigation strategies at the intersection of global commerce and extreme
events. Find more information at our website, www.willis.com, our
leadership journal, Resilience, or our
up-to-the-minute blog on breaking news, WillisWire. Across geographies, industries and
specialisms, Willis provides its local and multinational clients with
resilience for a risky world.
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UnipolSai - Fernando Vacarini
+39 051 507 23 49
Email: Fernando.Vacarini@unipolsai.it
Willis Re - Laura Molloy
+44 20 3124 8555
Email: Laura.Molloy@willis.com
Willis - Peter Poillon
+1 212 915 8084
Email: Peter.Poillon@willis.com