New York
07 August 2017
Reporter: Becky Butcher

GC Securities completes World Bank’s first listed cat bond


GC Securities has completed the placement of a $360 million three-class catastrophe bond issued by the International Bank for Reconstruction and Development (World Bank).

The cat bond, which will benefit the Mexican government’s Fund for Natural Disasters, is the first listed property and casualty bond issued under the World Bank’s Capital-at-Risk notes programme.

The notes provide three years of earthquake protection and three seasons of Atlantic and Pacific named storm cover.

Through the World Bank Capital-at-Risk notes programme, Mexico is returning to the cat bond market for the first time since 2012, when it accessed capital markets-based protection via the MultiCat Mexico catastrophe bonds.

Aidan Pope, CEO of Latin America and the Caribbean at Guy Carpenter, commented: “The World Bank Capital-at-Risk notes protecting the government of Mexico’s Fund for Natural Disasters provide a very cost-efficient source of risk transfer and maximizes protection in one of the regions with the greatest exposure.”

Pope added: “With this issuance, the government of Mexico has increased its resiliency in line with their overall macroprudential risk management strategy.”

GC Securities served as the joint structuring agent and joint manager along with Munich Re, as well as the sole book-runner and initial purchaser.

In total, GC Securities has placed six insurance-linked securities (ILS) for the World Bank’s Capital-at-Risk notes programme.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Cayman captive industry generated $100m in 2016
14 December 2017 | Grand Cayman | Reporter: Ned Holmes
The Cayman Islands captive insurance industry generated $100 million for the island’s economy in 2016, according to a recent economic impact survey.
BDA board gains new chair
14 December 2017 | Hamilton | Reporter: Ned Holmes
Paul Scope has been elected as the new chair of the Bermuda Business Development Agency (BDA) and Shelby Weldon has been appointed to the board of directors.
Ameriprise captive rated ‘excellent’, says A.M. Best
14 December 2017 | New Jersey | Reporter: Ned Holmes
Ameriprise Captive Insurance Company (ACIC) has received a financial strength rating of “A (Excellent)” and a long-term issuer credit rating of “a+” from A.M. Best.
PRIIA to help grow Puerto Rico as a captive domicile
13 December 2017 | San Juan | Reporter: Ned Holmes
The Puerto Rico International Insurance Association (PRIIA) will play an expanded role in helping to grow the country into a leading captive insurance domicile, according to PRIIA president Hugo Cordova.
Brit launches new Bermuda-based SPI
13 December 2017 | Bermuda | Reporter: Ned Holmes
Insurance and reinsurance group Brit has launched a new Bermuda-domiciled collateralised reinsurance platform, Sussex Capital.
Two funds complete trade on ILSBlockchain
12 December 2017 | St Peter Port | Reporter: Ned Holmes
Two funds have completed what is believed to be the first secondary market securities trade on notes digitised on the ILSBlockchain, a private blockchain set up by Guernsey incorporated cell company Solidum Re.
NiSource captive rated ‘excellent’ by A.M. Best
11 December 2017 | Oldwick | Reporter: Ned Holmes
A.M. Best has given the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” to NiSource Insurance Corporation (NICI).