June 11th, 2012

GC Securities* Completes Long Point Re III Ltd. Catastrophe Bond On Behalf of Travelers

Posted at 1:00 AM ET

GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, today announced the placement of USD250 million Principal At-Risk Variable Rate Notes (”Series 2012-1 Notes”) through catastrophe bond issuer Long Point Re III Ltd.

The Series 2012-1 Notes will collateralize a three-year per occurrence fully collateralized reinsurance agreement provided to Travelers from Long Point Re III Ltd., against hurricanes affecting the northeast United States (Virginia to Maine). The bond utilizes an indemnity-based trigger and is the first capital markets issuance to provide protection to Travelers on such basis.

GC Securities acted as the lead structurer and joint bookrunner on the issuance, and AIR Worldwide Corporation was the modeling firm for the transaction.

Risk Profile

Series 2012-1 Notes

Class A Notes

Expected Loss
(Sensitivity Basis)


Risk Interest Spread
(to Treasury Money Market Fund)


S&P Rating

BB+ (sf)

David Priebe, Vice Chairman, Guy Carpenter, said, “The coordinated effort between Guy Carpenter and Travelers ensured a successful transaction that will provide needed capacity and set the stage for even further innovation in this important space.”

Cory Anger, Global Head of ILS Structuring, GC Securities, added, “As a repeat sponsor of insurance-linked securities, Travelers was able to successfully issue its first-ever indemnity-based triggered capital markets transaction with continued strong support from the ILS investor base. The protection from Long Point Re III provides northeast U.S. hurricane protection on a per-occurrence basis, based on the actual reported losses from certain Travelers’ business units.”

Chi Hum, Global Head of ILS Distribution, GC Securities, said “ILS investors were eager to support Travelers on this diversifying northeast hurricane bond. Travelers’ strategy of utilizing an indemnity trigger provided significant advantages for integrating this cover into their total capacity purchase program. Long Point Re III Ltd. marked the first transaction in 2012 to upsize, while pricing through initial price guidance. GC Securities is proud to have worked with the Travelers on this successful deal execution.”

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* 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 an offer to buy any security, financial instrument, reinsurance or insurance product. 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. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

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