157 Re will assume a quota share of CCR Re’s worldwide property catastrophe portfolio, providing it with fully collateralized capacity to achieve its target of diversified and profitable organic growth. This strategic instrument will also provide CCR Re with full Solvency II regulatory credit and give it access to a new competitive and agile investor base.
157 Re takes the form of a mutual securitization fund (fonds commun de titrisation (FCT)) which has traditionally been used for financial assets securitization only. 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. France Titrisation is acting as the management company and BNP Paribas Securities Services, the custodian on the transaction.
Alkis Tsimaratos, managing director for EMEA W/S, Willis Re, said: "We're delighted to have supported CCR Re in its strategic growth objectives through this innovative sidecar, which is the first ILS instrument to use the French FCT regime. This was achieved by bringing together the combined knowledge and expertise of our embedded ILS and reinsurance teams. Our unique client focus and ILS offering further affirms our privileged position in the European ILS market.”
Quentin Perrot, senior vice-president at Willis Towers Watson Securities comments: “157 Re is testament of the great professionalism of the CCR Re team at all levels of the transaction and the innovative push from the top management. For this first transaction to use the French FCT regime covering insurance risks, we have been impressed with the commitment and responsiveness displayed by all the parties involved throughout the structuring and placement process. This makes the French FCT regime highly attractive, in particular for European based cedants who can benefit from the Solvency II regulatory credit for their ILS transactions”.
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