A new $45.5 million Randolph Re private catastrophe bond has been facilitated by Aon using the firm’s protected cell company White Rock Insurance Company PCC Limited.
This new series 2024-1 private cat bond marks the first time a catastrophe bond has been issued using a Guernsey PCC structure.
The deal is a renewal of previous deals that featured reinsurance of wildfire risks on an indemnity trigger basis for a US property casualty insurer with significant exposure to wildfire risk in the State of California.
The Carey Olsen Guernsey corporate team that advised the issuance of the bond comprised partner Christopher Anderson and senior associate Arya Hashemi.
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."
Guernsey Finance Chief Executive Rupert Pleasant added: “As the effects of climate change continue to intensify, it is imperative that financial centres such as Guernsey continue to put our expertise to good use to provide insurance cover for emerging climate risks.
“Guernsey is becoming the go-to jurisdiction for providing innovative solutions to manage and insure catastrophe bonds, following earlier work with the Danish Red Cross and IFRC.”
