Willis Capital launches simplified cat bond placement platform
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Looking to ease the private placement of catastrophe bonds for its clients, Willis Capital Markets & Advisory announced the establishment of Resilience Re on Monday.
The Resilience Re catastrophe bond platform will offer clients low cost access to reinsurance capacity sourced from the capital markets through a simplified placement process, the company said.
“By adding another source of capacity, Resilience Re will make our clients’ reinsurance programs themselves more resilient,” John Cavanagh, Global CEO of Willis Re, said in a statement. “The simplified process can integrate with the standard reinsurance placement or operate on a standalone basis.”
Bill Dubinsky, head of insurance-linked securities at Willis Capital said that Resilience Re’s integration with the reinsurance placement process will make it inherently more scalable than previous private ILS placement efforts.
Moreover, Mr. Dubinsky said the new platform will appeal to a wider range of institutional investors, including those that do not meet the capital requirements spelled out in Rule 144A of the Securities Act of 1933, which terms “qualified institutional buyers” as those with at least $100 million in investable assets.
“The primary target is for deals of the size and scope of collateralized reinsurance placements and cat bond light transactions,” Mr. Dubinsky said. “It is intended to complement the Rule 144A cat bond market.”
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