London, United Kingdom
Willis Capital Markets has acted as Co-Lead Manager of an offering of $100 million of notes linked to the occurrence of earthquakes in California. The notes, which have been issued by Ajax Re Limited as part of a $1 billion shelf program, provide reinsurance protection to Aspen Insurance Limited. Lehman Brothers acted as sole initial purchaser and bookrunner for the transaction.
The proceeds of the notes collateralize a reinsurance agreement between Ajax Re Limited and Aspen. Loss payments under the reinsurance agreement are triggered by estimated insured property losses as reported by Property Claims Services (PCS).
The notes, which were rated BB by Standard & Poor's and b+ by AM Best, have a coupon of Libor +625 basis points. The notes mature on May 9, 2009. The program allows Ajax Re to issue further series of notes to provide Aspen with up to $1 billion of protection, in respect of any perils, at any given time.
Mark Hvidsten, CEO of Willis Capital Markets, commented, "We are delighted to have acted as Co-Lead Manager of the Ajax Re notes issue. This transaction provides Aspen with catastrophe reinsurance at attractive terms. The ability to execute capital markets transactions is an essential part of the tool kit that enables us to provide our clients with the full spectrum of risk transfer solutions."
Joe Plumeri, Chairman and CEO, Willis Group commented. "We are constantly developing ideas and innovative approaches to risk management in order to better serve our clients. Our sophisticated analytics and our proven ability to deliver all forms of risk transfer, including catastrophe risk securitizations, help us provide better solutions to our clients."
Willis Capital Markets is the unit of Willis Group Holdings Limited that specializes in the structuring and placement of financial instruments that access risk capital from outside the traditional insurance and reinsurance markets. This capability enhances Willis' offering to its clients by enabling it to access and place risk with all sources of risk-bearing capacity. Willis Capital Markets operates in a global capacity and acts in the United States through Willis Securities Inc. and in the United Kingdom and European Union countries through Willis Structured Financial Solutions Ltd.
Willis Group Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has over 300 offices in some 100 countries, with a global team of approximately 16,000 employees serving clients in some 190 countries. Additional information on Willis may be found on its web site www.willis.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements there-under.
Source: Business Wire (Business Wire India)