WILLIS GROUP HOLDINGS PLC | Willis Capital Markets & Advisory Completes $250 million 'Golden State Re II' Cat Bond for State Compensation Insurance Fund |
NEW YORK, September 26, 2014 - Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings (NYSE: WSH), the global risk advisor, insurance and reinsurance broker, today announced that it has structured and placed a $250 million catastrophe bond transaction for State Compensation Insurance Fund ("State Fund"), California's largest provider of workers' compensation insurance. Golden State Re II represents State Fund's second time accessing catastrophe bond capacity. The transaction, which closed on September 16, provides State Fund with $250 million of fully collateralized protection for workers' compensation against California earthquake over a term of slightly over four years and three months. The renewal transaction features a modelled loss trigger on a per occurrence basis, similar to the one used by State Fund in its first catastrophe bond transaction in 2011. Investors were eager to support this transaction as it upsized from $150 million to $250 million while settling in at the bottom end of the initial pricing guidance of 2.20% to 2.70%. The transaction will replace a $200 million transaction as State Fund chose to increase the capacity it sources from the capital markets. Tony Ursano, CEO, Willis Capital Markets & Advisory said: "The pricing that State Fund was able to obtain on Golden State Re II highlights the rapidly changing dynamics in the ILS landscape over the last three years. For a similar layer that was placed in 2011, State Fund was able to obtain 25% more capacity while pricing dropped more than 40%. We expect investors to continue to welcome well-structured deals as capacity continues to seek ways to access insurance risk." The transaction marks WCMA's seventh successful cat bond placement of 2014 and fifth as sole manager, further demonstrating WCMA's market-leading ability in the structuring and placement of insurance-linked securities. About Willis Willis Group Holdings plc is a leading global risk advisor, insurance and reinsurance broker. With roots dating to 1828, Willis operates today on every continent with more than 18,000 employees in over 400 offices. Willis offers its clients superior expertise, teamwork, innovation and market-leading products and professional services in risk management and transfer. Our experts rank among the world's leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Find more information at our website, www.willis.com, our leadership journal, Resilience, or our up-to-the-minute blog on breaking news, WillisWire. Across geographies, industries and specialisms, Willis provides its local and multinational clients with resilience for a risky world. About Willis Capital Markets & Advisory Willis Capital Markets & Advisory, with offices in New York, London and Hong Kong, provides advice to companies involved in the insurance and reinsurance industry on a broad array of mergers and acquisition transactions as well as capital markets products, including acting as underwriter or agent for primary issuances, operating a secondary insurance-linked securities trading desk and engaging in general capital markets and strategic advisory work. Willis Capital Markets & Advisory is a trade name used by Willis Securities, Inc., a member of the Willis Group and a registered broker-dealer with the U.S. Securities and Exchange Commission and member of FINRA and SIPC. This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy, or, except with respect to an accompanying confirmation of transaction sheet, as a confirmation of terms of the purchase or sale of, any security. The information contained herein is as of this date only, is subject to change and does not contain all information necessary to adequately evaluate an investment in any financial instrument. Information contained in this communication may not reflect information known to other employees in any other business areas of Willis Group and its affiliates. All the securities referred to herein having been sold, this announcement is a matter of record only. This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. 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.
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