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Reinsurance News

Aon Securities reveals key role in Chaucer acquisition, Peak Re sidecar

12th April 2019 - Author: Charlie Wood

Aon Securities, the investment banking division of Aon, has detailed its involvement in two significant transactions on behalf of Asia re/insurers.

Aon logoAon Securities served as the sole buy-side mergers and acquisitions advisor to China Re on its recent acquisition of Chaucer.

China Re wrapped up its acquisition of the London-based and Lloyd’s focused specialty re/insurance business of The Hanover, in late 2018.

The transaction was valued at around $950 million, made up of a cash consideration of $865 million paid by Hong Kong listed China Re, as well as a pre-signing dividend from Chaucer of $85 million.

It was an attractive profit for The Hanover, which acquired Chaucer back in 2011.

In addition, Aon Securities also acted as the sole structuring and placement agent of Asia’s first sidecar transaction.

Peak Re, the Hong Kong based global reinsurer majority backed by Fosun International, completed its groundbreaking insurance-linked securities (ILS) transaction in December 2018.

Lion Rock Re Ltd. was the Bermuda special purpose insurance (SPI) vehicle registered to support the transaction.

The deal, which saw investors subscribe for $75 million of notes issued by Lion Rock Re, provided Peak Re with a source of capital markets-backed collateralised retrocession, covering part of the reinsurers’ global property reinsurance portfolio.

Paul Schultz, Chief Executive Officer of Aon Securities, said, “Over the years, and more so since Aon Securities increased its Asian presence with an office in Hong Kong to complement its Tokyo office, we have successfully demonstrated the team’s expertise in managing complex cross-border deals and leading pioneering transactions involving Asian clients in both mergers and acquisitions and capital markets.”

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