NEW YORK--(BUSINESS WIRE)--GC Securities, a division of MMC Securities LLC, a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today announced the placement of a single class of the Series 2016-1 Notes with principal amount of US $75,000,000 through the newly formed special purpose insurer domiciled in Bermuda, First Coast Re Ltd., to ultimately benefit Security First Insurance Company (“SFIC”) in SFIC’s first use of catastrophe bond-based reinsurance.
The Notes provide per occurrence indemnity triggered protection from Named Storms and Severe Thunderstorms (including tornado and hail events) affecting the State of Florida. They are structured with a “top & drop” cascading feature where the attachment level adjusts through an annual period as covered events occur and erode Security First Insurance Company’s other reinsurance that inures to the benefit of the cat bond.
The Series 2016-1 Notes have an annual attachment probability of 1.37% and annual expected loss of 1.31% based on AIR Worldwide’s Hurricane Model for the U.S. (warm sea surface temperature conditioned sensitivity catalog) and Severe Thunderstorm Model for the United States.
GC Securities served as joint structuring agent and joint bookrunner.
|Notes||Size (USD)||Expected Maturity||Coupon|
Series 2016-1 Principal At-
Permitted Investments Yield (initially based on UST
Cory Anger, Global Head of ILS Structuring, GC Securities
“We are honored to have supported Security First Insurance’s initial foray into the cat bond space. The cascading per occurrence protection was designed with significant flexibility to respond to the covered events of Named Storms and Severe Thunderstorms from a severity and frequency perspective through the cascading feature within an annual risk period as well as through a variable annual reset to adjust the position of such protection layer in future years.”
Chi Hum, Global Head of ILS Distribution, GC Securities
“The strong support of more than 20 participating investors for the Series 2016-1 Notes demonstrates the investor base’s respect for Security First Insurance’s management and approach to underwriting and claims handling in Florida.”
Guy Carpenter, GC Securities, Security First Insurance Company, SFIC, First Coast Re, catastrophe bond, cat bond, Anger, Hum
About Guy Carpenter
Guy Carpenter & Company, LLC is a leading global risk and reinsurance specialist. Since 1922, the company has delivered integrated reinsurance and capital market solutions to clients across the globe. As a most trusted and valuable reinsurance broker and strategic advisor, Guy Carpenter leverages its intellectual capital to anticipate and solve for a range of business challenges and opportunities on behalf of its clients. With over 2,300 professionals in more than 60 offices around the world, Guy Carpenter delivers a powerful combination of broking expertise, strategic advisory services and industry-leading analytics to help clients achieve profitable growth. For more information on Guy Carpenter’s complete line-of-business expertise and range of business units, including GC Specialties, GC Analytics®, GC Fac®, Global Strategic Advisory, GC Securities*, Client Services and GC Micro Risk Solutions®, please visit www.guycarp.com and follow Guy Carpenter on LinkedIn and Twitter @GuyCarpenter.
Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE:MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy, and people. With annual revenue of $13 billion and 60,000 colleagues worldwide, Marsh & McLennan Companies provides analysis, advice, and transactional capabilities to clients in more than 130 countries through: Marsh, a leader in insurance broking and risk management; Mercer, a leader in talent, health, retirement, and investment consulting; and Oliver Wyman, a leader in management consulting. Marsh & McLennan is committed to being a responsible corporate citizen and making a positive impact in the communities in which it operates. Visit www.mmc.com for more information and follow us on LinkedIn and Twitter @MMC_Global.
*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities LLC, MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.