Swiss Re structured and placed the issuance of $250 mn of ILS

Swiss Re Capital Markets has successfully structured and placed the issuance of USD 250 million of insurance-linked securities issued with respect to certain real estate funds managed or controlled by affiliates of Blackstone under Wrigley Re.

The transaction is Blackstone’s first indemnity catastrophe bond and covers named storms and earthquakes in the United States and Canada.

This transaction is the result of a collaboration between Blackstone and ILS investors to develop a new solution that fits the challenges of an asset manager and expands the boundaries of the ILS market.

Jean-Louis Monnier, Head of ILS at Swiss Re

It is a milestone in the ILS market‘s path to realize its potential as an efficient provider of peak peril capacity.

The deal sets two milestones. It is the first corporate catastrophe bond covering named storms on an indemnity basis, and the first corporate catastrophe bond covering multiple countries.

This transaction is the first indemnity catastrophe bond by Wrigley Re Ltd. on behalf of Gryphon Mutual Property Americas IC, which acted as insurer for real estate funds managed or controlled by affiliates of Blackstone.

Swiss Re Capital Markets structured the transaction via two classes of principal at-risk variable rate notes issued by Wrigley Re, a Bermuda exempted company licensed and registered as a special purpose insurer under the Bermuda Insurance Act 1978 and related regulations, each as amended.

  • The USD 100 million Series 2023-1 Class A notes provide protection on an indemnity per occurrence basis for named storms in the US and Canada and an indemnity annual aggregate basis for earthquakes in the US excluding California and Canada.
  • The USD 150 million Series 2023-1 Class B notes provide protection on an indemnity annual aggregate basis for earthquakes in California.

Both classes of notes have a three-year risk period starting July 28 2023 and introduce an innovative risk-based premium adjustment mechanism to adjust for changes in risk in the covered real estate portfolio.

Swiss Re Capital Markets acted as the sole structuring agent and joint bookrunner.

The Wrigley Re 2023-1 notes were sold pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject, to the registration requirements of the Securities Act and applicable state securities laws.

 Oleg Parashchak  by Oleg Parashchak