May 24th, 2013

GC Securities* Completes Catastrophe Bond Blue Danube II Ltd. Series 2013-1 Notes for Allianz

Posted at 2:00 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 the Series 2013-1 Notes, with notional principal of $175,000,000, through a newly formed catastrophe bond shelf program, Blue Danube II Ltd., to benefit Allianz. This is the second time that Allianz has accessed PCS-MITT triggered cat bond protection and the eighth overall cat bond issuance benefitting Allianz since 2007.

The Series 2013-1 Notes provides three years of per occurrence protection for named storms affecting the United States, Mexico and the Caribbean and earthquakes affecting Canada and the United States. This protection was further enhanced by several new features including an expanded hurricane definition to include named storms as well as adjustments to how losses in Mexico and the Caribbean are factored into triggering the protection.

GC Securities served as joint structuring agent and joint bookrunner.  

RISK PROFILE

Series 2013-1 Notes

Size

S&P Rating

Expected Maturity

Coupon

Class A

$175,000,000

BB+ sf

May 23, 2016

6 month LIBOR – 30 bps + 4.25%

David Priebe, Vice Chairman of Guy Carpenter and Head of GC Securities, said, “The accelerated convergence between the capital markets and (re)insurance sectors coupled with Allianz’s consistent cat bond track record was a catalyst for Allianz capturing the attractive pricing and capacity for the Series 2013-1 Notes. GC Securities is honored to have assisted Allianz in the offering of the Series 2013-1 Notes.”

Cory Anger, Global Head of ILS Structuring, GC Securities, added, “Allianz’s experience as a repeat cat bond sponsor allowed it to take advantage of market conditions with respect to garnering favorable terms/conditions, pricing and capacity. For example, expanding the protection to a named storm basis for the U.S., Mexico and the Caribbean region was an important structural consideration for Allianz in the Series 2013-1 Notes. Investors have shown a willingness to embrace structural flexibility when given proper rationale.”

Chi Hum, Global Head of ILS Distribution, GC Securities, said “Capital markets investors came out in force to support Allianz again in the most recent Blue Danube II Ltd. bond issue. As a seasoned user of cat bonds, Allianz has been successful convincing investors to support customized risk and structural terms that are important coverage items in their overall reinsurance program. The oversubscription and broadly balanced book of investors on this cat bond issue will serve Allianz well as they seek to evaluate and optimize the benefits of capital markets capacity relative to traditional capacity.”

*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.  **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

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