Toa Re Europe, the Switzerland-based European reinsurance arm of Japanese group Toa Reinsurance Company, has sponsored $25 million of Silver Crane three-year catastrophe notes with selected investors.
This private catastrophe bond will further develop Toa Re Europe’s collaboration with capital market partners, along with the renewal of its predecessor Blue Crane, an ISDA-derivative with a one-year term placed bilaterally in 2021 for the first time.
Sharing the same underlying risk, Toa Re explains that both transactions come with a novel, modular structure in the form of a synthetic quota share, bundling quite a unique and diversifying set of independent natural catastrophe scenarios into a transparent index.
Furthermore, the international investor base from North America, Europe, and Asia also benefited from the transactions being sold in a ‘zero-coupon’ format at a discount to their nominal value.
Philippe Regazzoni, CEO of Toa Re Europe in Zurich, explained: “From a strategic perspective, ‘Silver Crane’ adds an innovative and complementary pillar to the traditional retrocession approach for supporting our European treaty portfolio.”
Jin Shah, Director at RMS, said: “RMS is pleased to provide the risk analytics and services Toa Re needed in securing capacity in the Capital Markets with this unique placement.”
Rom Aviv, CEO of RHA Advisory, commented: “It has been an absolute pleasure working with Bank Vontobel to support Toa Re and its energetic and innovative team in placing this clearly differentiating instrument, thus both enhancing Toa Re’s risk management tool kit as well as offering a unique proposition to the ILS community”.
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