Member Article

Carey Olsen advises on groundbreaking private catastrophe bond

The bond was issued from the Randolph Re cell of Aon's White Rock Insurance Company PCC Limited – the first time a catastrophe bond has been issued out of a Guernsey vehicle. Previous Randolph Re catastrophe bonds were all issued out of Aon's Bermuda cell company, White Rock Insurance (SAC) Ltd. structure, making this a first for Guernsey and one of only a few cat bonds issued in this jurisdiction.

This is the sixth insurance-linked securities (ILS) offering to be issued by Randolph Re's private catastrophe bond issuance and placement platform. Aon Securities, in each case, was the sole arranger and placement agent. 

Carey Olsen partner Christopher Anderson said: "The delivery of Randolph Re's latest private cat bond via a Guernsey protected cell company for the very first time is a groundbreaking moment for Guernsey's insurance industry. It showcases both the benefits of structuring ILS transactions through Guernsey and Aon's ability to broaden its reach to multiple jurisdictions."

The Carey Olsen Guernsey corporate team advising on the transaction comprised partner Christopher Anderson and senior associate Arya Hashemi.

The bonds issued out of the Guernsey cell were listed on the Bermuda Stock Exchange with the assistance of Carey Olsen Bermuda corporate partner Gavin Woods, counsel Max Tetlow and associate Aleeza Dulaney.

 

Link to article