GC Securities, a Division of MMC Securities Corp., Announces Completion of 144A Catastrophe Bond – Calypso Capital Limited
Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, and GC Securities, today announced the completion of EUR275 million Class A Principal At-Risk Variable Rate Notes due January 10, 2014 (”Series 2010-1 Notes”) from a newly created 144A catastrophe bond program, Calypso Capital Limited (Calypso). Calypso is an Irish special purpose company created to provide protection to AXA Global P&C (”AXA”). The Series 2010-1 Notes issuance, the largest Euro denominated issuance in the history of the catastrophe bond market, will provide protection against European windstorm events.
The Series 2010-1 Notes utilize a CRESTA zone and line of business weighted per occurrence PERILS index trigger structure based on insured losses reported by PERILS after the occurrence of a Europe Windstorm. This marks the second transaction to utilize the PERILS Industry Loss Index and the first to utilize the PERILS Industry Exposure Database for the modeling analysis of the Series 2010-1 Notes.
This issuance provides AXA with EUR275 million of fully collateralized, multi-year protection against windstorm events throughout Europe, including Belgium, Denmark, France (excluding French overseas territories), Germany, Ireland, Luxembourg, the Netherlands, Switzerland and the United Kingdom.
GC Securities was a joint structuring agent and joint bookrunner on this issuance. The details of the catastrophe bond issuance are as follows:
Eric Paire, Managing Director and European Insurance Solutions Group Leader, Guy Carpenter & Company, stated “We are proud to have been selected by AXA to deliver this innovative product to the market. Calypso is the first cat bond to utilize the PERILS industry loss exposure database for the modeling analysis and the second cat bond to utilize PERILS industry loss service for the trigger calculation.”
Henry Keeling, President & CEO of International Operations, Guy Carpenter & Company, added “Consistent with Guy Carpenter’s desire to bring increasing value to our clients, this transaction illustrates how we efficiently deliver high-value transactions from our capital market specialists, working hand in hand with Guy Carpenter’s property catastrophe specialists and account team for AXA.”
Bill Kennedy, Global CEO of Global Analytics, Capital Markets, Specialty Practices and Advisory, Guy Carpenter & Company, continued “We are pleased that AXA selected Guy Carpenter and GC Securities as its trusted partner to deliver the Calypso Capital Limited program and the Series 2010-1 Notes. We are proud of this longstanding relationship and the close coordination between our two firms that enabled the innovative structuring and strong distribution of this cat bond. This represents GC Securities’ fifth cat bond offering in 2010, underscoring Guy Carpenter’s commitment to the ILS markets and innovative risk transfer solutions.”
* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/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., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., 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.
This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.
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