GC Securities* Completes Catastrophe Bond First Coast Re Ltd. on Behalf of Security First Insurance Company
06 June 2016 - 11:00PM
Business Wire
GC Securities, a division of MMC Securities LLC, a U.S.
registered broker-dealer and member FINRA/NFA/SIPC, today announced
the placement of a single class of the Series 2016-1 Notes with
principal amount of US $75,000,000 through the newly formed special
purpose insurer domiciled in Bermuda, First Coast Re Ltd., to
ultimately benefit Security First Insurance Company (“SFIC”) in
SFIC’s first use of catastrophe bond-based reinsurance.
The Notes provide per occurrence indemnity triggered protection
from Named Storms and Severe Thunderstorms (including tornado and
hail events) affecting the State of Florida. They are structured
with a “top & drop” cascading feature where the attachment
level adjusts through an annual period as covered events occur and
erode Security First Insurance Company’s other reinsurance that
inures to the benefit of the cat bond.
The Series 2016-1 Notes have an annual attachment probability of
1.37% and annual expected loss of 1.31% based on AIR Worldwide’s
Hurricane Model for the U.S. (warm sea surface temperature
conditioned sensitivity catalog) and Severe Thunderstorm Model for
the United States.
GC Securities served as joint structuring agent and joint
bookrunner.
NOTES PROFILE
Notes
Size (USD) Expected Maturity
Coupon
Series 2016-1 Principal At-Risk
Variable Rate Notes
$75,000,000
7-Jun-19
Permitted Investments Yield (initially
based on UST MMFs) + 4.00% per annum
QUOTESCory Anger, Global Head of ILS Structuring, GC
Securities“We are honored to have supported Security First
Insurance’s initial foray into the cat bond space. The cascading
per occurrence protection was designed with significant flexibility
to respond to the covered events of Named Storms and Severe
Thunderstorms from a severity and frequency perspective through the
cascading feature within an annual risk period as well as through a
variable annual reset to adjust the position of such protection
layer in future years.”
Chi Hum, Global Head of ILS Distribution, GC
Securities“The strong support of more than 20 participating
investors for the Series 2016-1 Notes demonstrates the investor
base’s respect for Security First Insurance’s management and
approach to underwriting and claims handling in Florida.”
TAGS/KEYWORDSGuy Carpenter, GC Securities, Security First
Insurance Company, SFIC, First Coast Re, catastrophe bond, cat
bond, Anger, Hum
About Guy Carpenter
Guy Carpenter & Company, LLC is a leading global risk and
reinsurance specialist. Since 1922, the company has delivered
integrated reinsurance and capital market solutions to clients
across the globe. As a most trusted and valuable reinsurance broker
and strategic advisor, Guy Carpenter leverages its intellectual
capital to anticipate and solve for a range of business challenges
and opportunities on behalf of its clients. With over 2,300
professionals in more than 60 offices around the world, Guy
Carpenter delivers a powerful combination of broking expertise,
strategic advisory services and industry-leading analytics to help
clients achieve profitable growth. For more information on Guy
Carpenter’s complete line-of-business expertise and range of
business units, including GC Specialties, GC Analytics®, GC Fac®,
Global Strategic Advisory, GC Securities*, Client Services and GC
Micro Risk Solutions®, please visit www.guycarp.com and follow Guy
Carpenter on LinkedIn and Twitter @GuyCarpenter.
Guy Carpenter is a wholly owned subsidiary of Marsh &
McLennan Companies (NYSE:MMC), a global professional services firm
offering clients advice and solutions in the areas of risk,
strategy, and people. With annual revenue of $13 billion and 60,000
colleagues worldwide, Marsh & McLennan Companies provides
analysis, advice, and transactional capabilities to clients in more
than 130 countries through: Marsh, a
leader in insurance broking and risk management; Mercer, a leader in talent, health, retirement, and
investment consulting; and Oliver Wyman, a leader in management consulting. Marsh &
McLennan is committed to being a responsible corporate citizen and
making a positive impact in the communities in which it operates.
Visit www.mmc.com for more information and follow us on LinkedIn
and Twitter @MMC_Global.
*Securities or investments, as applicable, are offered in the
United States through GC Securities, a division of MMC Securities
LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main
Office: 1166 Avenue of the Americas, New York, NY 10036. Phone:
(212) 345-5000. Securities or investments, as applicable, are
offered in the European Union by GC Securities, a division of MMC
Securities (Europe) Ltd. (MMCSEL), which is authorized and
regulated by the Financial Conduct Authority, main office 25 The
North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products
are placed through qualified affiliates of Guy Carpenter &
Company, LLC. MMC Securities LLC, MMC Securities (Europe) Ltd. and
Guy Carpenter & Company, LLC are affiliates owned by Marsh
& McLennan Companies. This communication is not intended as an
offer to sell or a solicitation of any offer to buy any security,
financial instrument, reinsurance or insurance product. **GC
Analytics is a registered mark with the U.S. Patent and Trademark
Office.
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version on businesswire.com: http://www.businesswire.com/news/home/20160606005671/en/
Guy CarpenterMissy DeAngelis,
1-917-937-3118missy.deangelis@guycarp.comorGuy CarpenterJennifer
Ainslie, 44-207-357-2058jennifer.ainslie@guycarp.com
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