Achmea Reinsurance Company N.V has entered into a four-year reinsurance agreement with Windmill III Re DAC, a multi-arrangement special purpose vehicle incorporated in Ireland, providing per occurrence cover in respect of losses from European windstorms originating from Achmea’s non-life insurance companies Achmea Schadeverzekeringen N.V. and N.V. Hagelunie.
Achmea explained that Windmill III Re DAC has issued a first 2024-1 series of notes of €100 million to fund its obligations under the reinsurance agreement. The transaction was upsized from an initial announcement size of €75 million, and the notes were priced at a spread of 5.25%.
Achmea added that this transaction forms part of its overall catastrophe reinsurance, diversifies its sources of protection against catastrophes, and provides a multi-year period of protection from 1 July 2024 to 30 June 2028.
You can read more about this Windmill III Re DAC (2024-1) catastrophe bond, and all others, in the Deal Directory of our sister publication, Artemis.
Ewoud Bom, managing director of Achmea Reinsurance commented, “This Windmill III Re series 2024-1 issuance contributes very well to our goal to diversify our access to reinsurance capacity worldwide and to broaden and strengthen our relationships with capital market investors.
“Our choice to have Windmill III Re setup as a multi-arrangement special purpose vehicle also creates the opportunity to achieve that goal more efficiently.
“The good reception of our fourth issuance from investors confirms the mutual benefit of our strategy to transfer part of our risk to the capital market.”
As per Artemis, catastrophe bond and insurance-linked-securities issuance for 2024 so far is $12.1 billion, while the outstanding market sits at around $47.5 billion.
