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Press Release

Willis Re Securities completes EUR 120 million ‘Hexagon II Reinsurance DAC’ catastrophe bond for Covéa

Reinsurance
Insurer Solutions

November 19, 2019

LONDON, 19 November 2019 – Willis Re Securities, part of Willis Re, the reinsurance division of  Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today announced that it has structured and placed EUR 120 million of insurance-linked securities (ILS) to provide reinsurance capacity for Covéa Mutual Insurance Group (“Covéa”), France’s largest domestic P&C insurance group.

The transaction was executed in collaboration with Willis Towers Watson’s traditional reinsurance broking business, Willis Re.

Hexagon II Reinsurance DAC (“Hexagon II Re”), which settled 5 November, provides Covéa with a single €120 million tranche of fully collateralized protection against windstorm and other weather-related events in France for a four-year period. The structure features an indemnity trigger on a per occurrence basis with terms mirroring the traditional reinsurance placement, to ensure effective integration within the overall property catastrophe reinsurance program.

Quentin Perrot, Head of Sales International at Willis Re Securities, said: “We are proud to have supported Covéa in their latest catastrophe bond transaction.

With this new issuance, Willis Re Securities maintains its unrivalled leadership position in the structuring and placement of European ILS transactions.”

Quentin Perrot
Head of Sales International, Willis Re Securities

Hexagon II Re is the first non-US cat bond transaction issued in the past nine months. The favourable closing conditions demonstrate investors’ strong appetite for Covéa natural catastrophic risk. With this new issuance, Willis Re Securities maintains its unrivalled leadership position in the structuring and placement of European ILS transactions.”

Alkis Tsimaratos, Managing Director of Willis Re EMEA W/S said: “Hexagon II Re offers a stable multiyear commitment at attractive terms, while integrating seamlessly in the broader reinsurance program of Covéa. The transaction demonstrates the ability of both the traditional reinsurance market and the catastrophe bond market to work together, offering increased reinsurance flexibility to cedants. It also confirms Covéa’s position as an established European ILS issuer and highlights the attractiveness of diversifying European perils to this market.

“Once again, our fully integrated model was key in providing the appropriate advice and execution for our client to achieve its goals. This transaction reaffirms our leading position on ILS issuances across the EMEA region.”

About Willis Re Securities

Willis Re Securities advises insurers, reinsurers, individual insureds and selected public entities on insurance and reinsurance-related capital markets products, including insurance-linked securities (ILS) and derivatives structuring and issuance, 
secondary trading of ILS for clients, as well as capital raising and selected M&A advisory activities.

Willis Re 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”) and 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 and exempt from the requirement to hold an Australian Financial Services License under ASIC Class Order [03/1099] (“WTW Securities Europe”).  Each of WSI and WTW Securities Europe are Willis Towers Watson companies.   Securities products and services are offered through WSI and WTW Securities Europe.  Reinsurance products are placed through Willis Re Inc. in the United States and Willis Limited in the UK, both also Willis Towers Watson companies.

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.

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