Willis Re completes €100m cat bond for Achmea Reinsurance

Willis Re Securities in collaboration with Willis Re, the reinsurance division of broker Willis Towers Watson, has structured and placed €100 million of insurance-linked securities (ILS) for Achmea Reinsurance Company N.V., the reinsurance arm of Dutch insurance group Achmea B.V.

The catastrophe bond Windmill II Re DAC provides Achmea Reinsurance with a single €100 million tranche of fully collateralised protection against European windstorm risk for a four-year period.

The transaction, which is the first cat bond exposed to primary European insurance risk in 2020, was upsized from an initial announcement size of €80 million and pricing at a spread of 4.00 percent, below the initial spread guidance.

The structure features an indemnity trigger on a per occurrence basis with terms mirroring the traditional reinsurance placement to ensure effective integration within the overall property catastrophe reinsurance program.

Quentin Perrot, head of ILS International, Willis Re Securities, said: “We are proud to have supported Achmea Reinsurance in its inaugural 144A catastrophe bond transaction. For the first time in 2020, a cat bond priced below the initial target range, demonstrating that cedants with a high quality and diversifying risk profile can achieve success in the cat bond market today. The dedication of the Achmea Reinsurance team throughout this project played a key role to ensure this great result. With this new issuance, Willis Re Securities maintains its unrivalled leadership position in the structuring and placement of European ILS transactions.”

Maya Popovic-Biereth, regional director, Willis Re EMEA N/E said: “Windmill II Re was a natural step forward in Achmea Reinsurance’s relationship with the ILS marketplace which has now matured into a partnership with a wide panel of ILS investors. The transaction demonstrates the cedant’s strategic utilisation of all the available sources of reinsurance capital and secures a multi-year capacity seamlessly integrated within their catastrophe program.

"Our collaborative culture, adaptability and resilience at Willis Re, was instrumental in assisting the client to successfully navigate the challenges of the present market environment. We are delighted to have been able to broaden our relationship with Achmea through the issuance of this catastrophe bond.”