Willis Capital Markets & Advisory announced the successful placement of a $75 million catastrophe bond transaction for American Modern Insurance Group last week.
The transaction, which closed on Dec. 23, provides American Modern with $75 million of fully collateralized protection against U.S. Named Storms for a three-year risk period. The structure features an indemnity trigger on a per occurrence basis.
Tony Ursano, CEO, Willis Capital Markets & Advisory said that transaction was substantially oversubscribed and pricing ended up well below the initial price guidance, noting that investors were eager to support a new sponsor.
American Modern is a diversified specialty short-tail lines carrier and fully-owned indirect subsidiary of Munich Re.
Willis Capital Markets and Advisory is a trade name used by Willis Securities, Inc., a member of the Willis Group and a registered broker-dealer with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.
Source: Willis Capital Markets & Advisory