Tokio Solution Management Ltd. (”Tokio Solution”) and GC Securities*, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/SIPC, are pleased to announce the creation and launch of a private catastrophe bond platform called the Tokio TensaiTM Platform.
Tokio Solution, a wholly owned subsidiary of Tokio Millennium Re Ltd. (”TMR”) and a leader in the risk transformation business, and GC Securities, a leader in the catastrophe bond market, have collaborated to bring sponsors a more efficient platform for funding excess of loss catastrophe reinsurance in the private capital markets.
Kathleen Faries, CEO of Tokio Solution said: “Tokio Solution is thrilled to introduce the Tokio TensaiTM Platform as an alternative to the traditional Rule 144A offering process. We are committed to using our experience and strength within the Tokio Millennium Re Group to bring innovative products and services across the full spectrum of the convergence market.”
Building off TMR’s extensive experience as a facilitator and risk transformer, Tokio Solution will provide clients the ability to sponsor catastrophe bond transactions through Shima Reinsurance Ltd. (”Shima Re”), the Bermuda domiciled Class III Segregated Accounts Company of TMR. GC Securities will serve as a placement agent for each of the private placements through Shima Re.
Through a simplified and standardized process, the Tokio TensaiTM Platform is designed to significantly reduce the time and cost traditionally associated with sponsoring catastrophe bonds by utilizing Shima Re’s platform and proprietary shelf documentation. The Tokio TensaiTM Platform will also allow clients to customize coverage along a range of triggers and reinsurance structures while in keeping with the lower cost approach of the product.
Chi Hum, Managing Director at GC Securities, commented: “This joint effort between GC Securities and Tokio Solution provides capital markets access to an underserved segment of (re)insurance buyers whose capacity needs are below the threshold amount needed to justify a traditional Rule 144A catastrophe bond issuance. The advantages of capital markets capacity previously available only to the largest of capacity buyers will now be made available to a broader client segment.”
The name Tokio TensaiTM, is derived from the Japanese word “Tensai,” which in English means “Genius” and “Act of God” - an appropriate reference for a product that is innovative and covers catastrophe risks. The English translation of Shima is “Island.”
*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, and may not be relied upon in connection with the purchase or sale of any security. Any offering or solicitation will be made only to qualified prospective investors. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.