Aon Securities launches private placement catastrophe bond platform

Aon Securities, the investment banking division of global professional services firm Aon, has launched Randolph Re, the firm’s new private placement catastrophe bond platform.

Randolph Re broadens the scope of Aon’s insurance-linked securities (ILS) offering, providing clients with a dedicated platform to execute private placement transactions above $25 million in issuance size.

The private placement catastrophe bonds will be issued via special purpose vehicle White Rock Insurance (SAC) Bermuda Ltd, with Aon Insurance Managers providing insurance management services.

Randolph Re enables clients to derive the benefits of syndicated collateralized cover in a manner that streamlines the overall deal execution and documentation process. The private placement catastrophe bonds will be tradeable in the secondary market and will be supported in the secondary market by Aon Securities’ trading desk.

Paul Schultz, CEO of Aon Securities, said: “The Randolph Re platform represents an evolution in the firm’s private placement of catastrophe bonds. It aims to be cost effective, is designed for efficient and fast execution, and will facilitate ILS usage by a much broader range of clients that want to access the capital markets and the significant alternative capital base. Randolph Re enables smaller deal sizes, meaning that transactions can be integrated into various parts of re/insurance programs, allowing significant flexibility for clients. Randolph Re fits neatly into the continuum between bilateral collateralized reinsurance and more broadly syndicated catastrophe bonds.”

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