Largest ever European wind deal closes
The largest catastrophe bond to cover European wind risk has closed. Green Fields II Capital is a €280 million bond that will provide Groupama with protection against French windstorm losses for three and a half years.
Swiss Re Capital Markets arranged the deal and underwrote the transaction. The bond was structured as part of the Green Fields II Capital Limited Principal At-Risk Variable Rate Note Program. Green Fields II Capital Limited is an Irish special purpose company established with limited liability.
The proceeds of the Notes collateralise a counterparty contract with Swiss Re, providing per-occurrence protection against French windstorms on a PERILS index basis. Swiss Re, in turn, entered into a reinsurance agreement providing French windstorm protection to Groupama.
"We are pleased to support Groupama's access to the capital markets by closing this landmark transaction,” said Jean-Louis Monnier, director and head of ILS Europe at Swiss Re Capital Markets.
“Swiss Re is the counterparty to the special purpose vehicle and in turn provides Groupama with a cover which combines the benefits of reinsurance and cat bond collateralisation. As the largest European windstorm transaction and largest Euro-denominated deal to date, this issuance further demonstrates the depth of the ILS market and its ability to complement reinsurance for European perils."
This placement is the first issuance from the newly established Green Fields II shelf program and the fourth for Groupama.
Meanwhile, Munich Re has also closed a $75 million cat bond deal arranged by GC Securities. Queen Street Re VIII represents the eighth Queen Street cat bond to benefit Munich Re and the seventh overall cat bond issuance benefitting Munich Re since 2011.
The notes provide 2.5 years of per occurrence protection for named storms affecting the US and 2.9 years of per occurrence protection for cyclones affecting Australia. This protection represents the first time that Munich Re has obtained protection against Australia cyclones via the capital markets.
GC Securities served as sole bookrunner on the deal.
