|[March 17, 2017]
ICAT Syndicate 4242 Places its First Catastrophe Bond, Buffalo Re Ltd.
ICAT Syndicate 4242 of Lloyd's of London has successfully sponsored its
first catastrophe bond, Buffalo Re Ltd Series 2017-1. The cat bond
placement supports indemnity reinsurance coverage from Buffalo Re Ltd.
for named storms and earthquakes occurring in the U.S. The coverage is a
part of Syndicate 4242's overall cat reinsurance program that renews on
With this cat bond issue, ICAT Syndicate 4242 is the first Lloyd's
syndicate since 2002 to act as sole sponsor for a cat bond. ICAT
Syndicate 4242 buys a robust reinsurance program of $745 million excess
of $40 million per occurrence, with the cat bond supporting $164.5
million of that coverage over a three-year risk period. The bonds were
issued in two tranches, with the coverage from the first tranche inuring
to the second tranche to provide cascading coverage for multiple events.
Final pricing came in at and below the initial launch range,
respectively for the Class A and Class B Notes even as the transaction
was upsized from the initial $125 million. Willis Capital Markets &
Advisory ("WCMA") served as the sole structuring agent and bookrunner
for the bonds.
Megan McConnell, Active Underwriter for ICAT Syndicate 4242
commented: "We are incredibly excited to have completed our first cat
bond and to have received such a warm reception from the capital
markets. Notwithstanding our already extensive relationships with
capital providers, this transaction offers the syndicate additional
sources of capacity and fits seamlessly within our overall reinsurance
strategy. We are proud to have partnered with Willis Capital Markets &
Advisory and their high level of expertise and professionalism has been
vital to the successful execution of the transacion."
Brad Livingston, Vice President of ILS for WCMA commented: "WCMA
is proud to have supported ICAT Syndicate 4242 in its inaugural
catastrophe bond transaction. Syndicate 4242 has been one of the best
performing syndicates over the past ten years and ICAT has a reputation
for best in class catastrophe underwriting in the SME market segment.
Investors were eager to support the business through Buffalo Re. Buffalo
Re provides the syndicate fully collateralized capacity at attractive,
stable pricing. We are pleased with the efficiency of the process, not
only in minimizing transaction expenses but also in compressing the
execution timeline to close in advance of the syndicate's core
reinsurance renewal process. Buffalo Re highlights the benefits and
continued ease of execution of fully distributed 144A transactions."
About ICAT Syndicate 4242
ICAT Syndicate 4242 began underwriting in 2007 with the goal of helping
homeowners and business owners in hurricane- and earthquake-prone
regions of the United States recover from natural disasters. Business is
produced in partnership with select retail agents, wholesale brokers and
ICAT Syndicate 4242 is managed by Asta Managing Agency and rated "A"
(Excellent) by A.M. Best Company and "A+" (Strong) by Standard & Poor's.
The Syndicate has been a top performer in the Lloyd's market over its
ten years of underwriting at Lloyd's. Boulder Claims, a subsidiary of
ICAT, has successfully managed more than 23,000 claims since its
founding in 2005, including those from Hurricanes Charley, Frances,
Katrina, Dolly, Ike, Isaac, Sandy and Matthew. For more information,
About Willis Capital Markets & Advisory
Willis Capital Markets & Advisory, with offices in New York, London,
Hong Kong and Sydney, 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 (News - Alert)"), Willis Capital Markets & Advisory Limited
(Registered number 2908053 and ARBN number 604 264 Page 2 of 2 Press
Release 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)").
View source version on businesswire.com: http://www.businesswire.com/news/home/20170317005413/en/
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