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 $300,000,000, through an existing catastrophe bond shelf program, Long Point Re III Ltd., to benefit Travelers. This is the second time that Travelers has accessed indemnity-triggered, fully collateralized reinsurance protection from the catastrophe bond market.
The Series 2013-1 Notes provides three years of per occurrence protection for hurricanes affecting northeast United States (Virginia to Maine). This protection was further enhanced by several new features that provide flexibility to Travelers, including an expanded hurricane definition, the ability to adjust the protection layer within a defined range upon an annual reset and incorporating an optional redemption feature.
GC Securities served as joint bookrunner.
Series 2013-1 Notes
Class A Notes
May 18, 2016
TMM + 4.00%
David Priebe, Vice Chairman of Guy Carpenter and Head of GC Securities, said, “Long Point Re III is the latest example of the accelerated convergence in 2013 between the capital markets and (re)insurance sectors. GC Securities is proud to have assisted Travelers in accessing capital markets capacity through the offering of the Series 2013-1 Notes.”
Cory Anger, Global Head of ILS Structuring, GC Securities, added, “In addition to the favorable pricing and capacity environment for cat bond sponsors, Long Point Re III demonstrates the continued innovation of the ILS sector to improve and balance structural terms. The Series 2013-1 Notes demonstrate state-of-the-art structural features that allow Travelers to best manage its protection needs with respect to northeast United States hurricanes and available forms of protection.”
Chi Hum, Global Head of ILS Distribution, GC Securities, said, “High levels of investor cash inflows led to broad investor support for a repeat issuer resulting in strong execution of the Longpoint Re III – Series 2013-1 Notes issued for the benefit of Travelers. With this Series 2013-1 issuance, Travelers continues to refine their cat bond structures to optimize and integrate its impact relative to their entire reinsurance purchase program.”
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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.