CCR Re is pleased to confirm it has successfully set up the first reinsurance sidecar vehicle domiciled in France, named 157 Re.
By assuming a 25% quota share of its worldwide property cat portfolio, 157 Re will provide CCR Re with fully collateralized capacity to achieve its target of a diversified and profitable organic growth. This strategic instrument will also provide CCR Re with full Solvency II regulatory credit and give it an access to a new competitive and agile investor base.
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Incepting on April 1st 2019, this is the first generation of what is expected to be an annually recurrent instrument in relationship with investors in order to support CCR Re’s growth on Property Cat businesses.
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157 Re is the first time ever insurance linked securities instrument governed by the French law and taking the form of a mutual securitization fund ( fonds commun de titrisation) that has been used for a long time, for financial assets securitization only.
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157 Re has been licensed by the French supervisory authority (Autorité de Contrôle Prudentiel et de Résolution). The French tax authorities have also provided formal guidance in respect of the tax treatment of the operation for the investors.
CCR Re is proud to have sponsored and contributed to this innovative transaction, with the assistance of Willis Towers Watson Securities, acting as structuring agent, France Titrisation, acting as management company, BNP Paribas Securities Services, acting as custodian, Linklaters, acting as transaction counsel, and Clyde & Co, acting as counsel to CCR Re on the reinsurance matters.
In doing so, we have together demonstrated the capabilities of the Paris financial marketplace to innovate and create a financial vehicle that meets the needs of both users and investors. This transaction, which could be easily duplicated to cover other types of insurance risks and develop other types of ILS instruments, is paving the way for the development of an ILS market in Paris.
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