WCMA acts as sole bookrunner for $75-million cat bond transaction

Willis Capital Markets & Advisory (WCMA) has acted as sole bookrunner on a catastrophe bond transaction to provide Munich Re with $75 million of multi-year, fully collateralized protection against United States hurricane and European wind exposures.

The “Queen Street VII Re” cat bond transaction – which closed on Oct. 31 and expires in April 2016 – was co-placed by Munich Re Capital Markets and sole structured by Munich Re, the world’s largest reinsurer, notes a statement from Willis.

The current market outlook remains very encouraging, Willis reports, adding that risk spreads have tightened significantly in recent months because of investor appetite and capacity, and a perceived softening in reinsurance rates.

With the active cat bond market throughout 2012, this may be an ideal time for existing and potential sponsors to consider whether or not to access this market with a new issuance, the statement adds. Total non-life issuance exceeds $4 billion year to date, with 2012 looking like it will see the greatest new issuance volume since 2007.

“This transaction further demonstrates the strong investor demand at present for risk in catastrophe bond form,” says Tony Ursano, CEO of WCMA. “WCMA remains ready and able to structure and execute catastrophe bond transactions for our clients,” Ursano adds.