The historic catastrophe bond was sponsored by China Property & Casualty Reinsurance Company Ltd. (CPCR), a leading non-life reinsurance organization wholly owned by China Re (Group) Corporation – the sixth largest global reinsurance group by gross written premiums*.
Structured and placed by Aon Securities (Hong Kong) Limited, the bond provides CPCR with $30 million-per-occurrence typhoon catastrophe protection. A meaningful percentage of the bond’s investors were local to Hong Kong, highlighting the regional support for insurance-linked securities (ILS) as a diversifying asset class.
The transaction, issued by Greater Bay Re Limited, positions Hong Kong as an important gateway for global capital to support sustainable growth in China through non-traditional risk transfer solutions.
Zhang Renjiang, General Manager of China Property & Casualty Reinsurance Company Ltd., commented: “As the first catastrophe bond to have been issued from Hong Kong, Greater Bay Re represents a significant milestone for the insurance industry in supporting the development of Guangdong-Hong Kong-Macau Greater Bay Area through the provision of typhoon catastrophe protection.”
Paul Schultz, CEO of Aon Securities, said: “This pioneering transaction demonstrates the potential for Hong Kong to become an important risk transfer hub for the region. The global insurance-linked securities sector has had its strongest year ever, and we believe that solutions such as the CPCR catastrophe bond can only serve to maintain momentum and solidify the position of ILS as an effective component of companies’ risk transfer strategies as they rethink access to capital.”
Qin Lu, CEO of Aon’s Reinsurance Solutions Greater China and Aon’s Commercial Risk Solutions China, added: “We are excited that Aon has brought to market the first catastrophe bond issued from the Special Administrative Region of Hong Kong to provide protection for CPCR’s underlying catastrophe exposures. It is critical that we as an industry continue to develop and apply a range of solutions to close protection gaps for governments, organizations, communities and individuals.”
Aon Securities (Hong Kong) Limited, licensed under the Securities and Futures Commission to carry on regulated activities of dealing in securities (Type 1) and advising in securities (Type 4) under the Hong Kong Securities and Futures Ordinance, was selected as the sole structuring agent and sole placement agent for the catastrophe bond issued by Greater Bay Re Limited.
More information about Aon Securities is available here.
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