Munich Re facilitates capital-markets solution for Assicurazioni Generali S.p.A.
Munich Re acted as co-structuring agent for a €190m catastrophe bond transaction on behalf of Assicurazioni Generali S.p.A. (Generali) that transfers European windstorm risks to the capital markets.
Munich. Generali has acquired reinsurance protection of €190m for European windstorm risks. The protection is provided by an Irish special purpose reinsurance vehicle, Lion I Re Limited, which has issued principal at-risk variable rate notes based on an indemnity, per-occurrence trigger with a three-year risk period.
The notes pay a variable rate of interest corresponding to the risk premium of 2.25% p.a paid by Generali and the yield on the collateral. The collateral will initially comprise puttable notes issued by the European Bank for Reconstruction and Development (EBRD). The notes have received a rating of B+ sf from Fitch.
Thomas Blunck, Member of Munich Re’s Board of Management, said: “The transaction is the outcome of a successful collaboration with our long-standing client Generali. We are happy to have assisted Generali with this broader-ranging risk-transfer instrument, augmenting our tailor-made traditional reinsurance programme.”
This press release is prepared for the purpose of public announcement of the insurance solution provided by Munich Re in connection with the issuance of the bonds referred to herein (the "Bonds") and does not constitute or form part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment therefore.
All of the Bonds have been sold and this announcement is a matter of record only. The Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities law and the issuer is not and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act").
The Bonds were offered and sold only to investors who are qualified institutional buyers in accordance with Rule 144A under the Securities Act and who, in the case of U.S. persons (as the term is defined in Regulation S under the Securities Act), are also qualified purchasers for purposes of Section 3(c)(7) of the Investment Company Act and may not be re-offered or re-sold except in compliance with all applicable transfer restrictions. Any purported transfer in violation of those restrictions will be null and void. In addition, the Bonds may be held only in certain permitted jurisdictions.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. Munich Re assumes no liability to update these forward-looking statements or to conform them to future events or developments.