Tokio and GC launch private cat bond platform
Tokio Solution Management, a subsidiary of Tokio Millennium Re, and GC Securities have launched a private catastrophe bond platform called the Tokio Tensai Platform.
The two companies say the arrangement will provide sponsors with a more efficient platform for funding excess-of-loss catastrophe reinsurance in the private capital markets.
Tokio Solution Management will allow clients to sponsor catastrophe bond transactions through Shima Reinsurance, the Bermuda domiciled Class III Segregated Accounts Company of Tokio Millennium Re. GC Securities will serve as a placement agent for each of the private placements through Shima Re.
Through a simplified and standardised process, the Tokio Tensai Platform is designed to reduce the time and cost traditionally associated with sponsoring catastrophe bonds by utilising Shima Re’s platform and proprietary shelf documentation. The platform will also allow clients to customise coverage along a range of triggers and reinsurance structures while in keeping with the lower cost approach of the product.
“Tokio Solution is thrilled to introduce the Tokio Tensai Platform as an alternative to the traditional Rule 144A offering process,” said Kathleen Faries, CEO of Tokio Solution Management. “We are committed to using our experience and strength within the Tokio Millennium Re Group to bring innovative products and services across the full spectrum of the convergence market.”
Chi Hum, managing director at GC Securities, said: “This joint effort between GC Securities and Tokio Solution provides capital markets access to an underserved segment of re/insurance buyers whose capacity needs are below the threshold amount needed to justify a traditional Rule 144A catastrophe bond issuance. The advantages of capital markets capacity previously available only to the largest of capacity buyers will now be made available to a broader client segment.”
The name Tokio Tensai is derived from the Japanese word Tensai, which in English means “Genius” and “Act of God”. The English translation of Shima is “Island.”
