GC Securities, a provider of investment banking services to the (re)insurance industry and affiliate of Guy Carpenter & Company announced the placement of USD135 million of protection through an existing catastrophe bond shelf program, Foundation Re III Ltd., to benefit Hartford Fire Insurance Company. The Series 2011-1 Notes, which represent The Hartford’s fifth utilization of its “Foundation Re” program, provide fully collateralized, multi-year protection for United States hurricanes.
GC Securities acted as co-structuring agent and co-manager for the offering. This marks GC Securities’ first transaction of 2011, after securing over USD1.25 billion of capital markets protection for its clients in 2010.
Bill Kennedy, CEO of Global Analytics and Advisory, stated “We are pleased to support Hartford Fire Insurance Company’s risk management objectives for the second consecutive year with this transaction. The execution of Foundation Re 2011-1 within stated guidance and with upsized issuance amount is a testament to the Hartford brand and evidence of the catastrophe bond market’s continued ability to function as a valuable source of risk transfer capacity for cedents.”
Cory Anger, Global Head of ILS Structuring, added “Clearly, investors are keen to support a strong sponsor that is committed to accessing the cat bond market with a transparent structure and trigger mechanics. Polygons utilizing separate factors for intra-state sub-regions in both New York and Florida areas allow The Hartford to further minimize its basis risk while avoiding a negative impact on deal execution.”
* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a U.S. 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.