Swiss Re Capital Markets closes largest ever European Wind cat bond transaction for Groupama SA
03 July 2013, New York
Swiss Re Capital Markets has successfully arranged the issuance of EUR 280 million of insurance-linked securities by Green Fields II Capital Limited ("Green Fields II") on behalf of Groupama S.A. The securities cover windstorms in France.
Swiss Re Capital Markets underwrote the transaction which covers French windstorm losses for three and a half years. The bond was structured as part of the Green Fields II Capital Limited Principal At-Risk Variable Rate Note Program. Green Fields II Capital Limited is an Irish special purpose company established with limited liability.
The proceeds of the Notes collateralize a counterparty contract with Swiss Reinsurance Company Ltd ("Swiss Re"), providing per-occurrence protection against France windstorm on a PERILS index basis. Swiss Re, in turn, entered into a reinsurance agreement providing France windstorm protection to Groupama.
Jean-Louis Monnier, Director and Head of ILS Europe at Swiss Re Capital Markets, comments: "We are pleased to support Groupama's access to the capital markets by closing this landmark transaction. Swiss Re is the counterparty to the special purpose vehicle and in turn provides Groupama with a cover which combines the benefits of reinsurance and cat bond collateralization. As the largest Europe windstorm transaction and largest Euro-denominated deal to date, this issuance further demonstrates the depth of the ILS market and its ability to complement reinsurance for European perils."
This placement is the first issuance from the newly established Green Fields II shelf program and the fourth for Groupama.
Swiss Re Capital Markets acted as sole arranger.
Standard & Poor's has published a BB (sf) rating for Green Fields II notes.
The Green Fields II notes were sold pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject, to the registration requirements of the Securities Act and applicable state securities laws.
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Swiss Re Capital Markets
In the U.S., securities products and services are offered through Swiss Re Capital Markets Corporation, a registered broker dealer and a member of FINRA and SIPC. [In the European Union, securities products and services are offered through Swiss Re Capital Markets Limited.] Swiss Re Capital Markets Limited Swiss Re Capital Markets Limited is authorized and regulated in the U.K. by the Financial Conduct Authority[, and benefits from a passport into certain member states of the European Union pursuant to the Markets in Financial Instruments Directive 2004/39/EC]. Swiss Re Capital Markets Corporation and Swiss Re Capital Markets Limited, together “Swiss Re Capital Markets”, are wholly owned subsidiaries of Swiss Re Ltd.
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk-taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of over 60 offices globally and is rated "AA-" by Standard & Poor's, "A1" by Moody's and "A+" by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com or follow us on Twitter @SwissRe.
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