Insurance Australia Group Ltd. has secured 75 million Australian dollars ($ 53.5 million) of annual aggregate catastrophe protection for three years with its Orchard ILS Pte. Ltd. catastrophe bond, GC Securities, a division of MMC Securities LLC, said in a statement Wednesday
The bond is part of IAG's 2019 catastrophe aggregate reinsurance cover and represents the first such transaction by the company, said GC securities, sole structuring agent and sole placement agent for the catastrophe bond.
Orchard ILS Pte Ltd.
The bond is an AU $ 75 million Series 2019-1 Class A Principal At-Risk Variable Rate Notes Due Jan . 17, 2022, according to statement Rajah & Tann Singapore LLP, which acted as Singapore counsel to the transaction, the statement said.
In February 201
"The IAG cat bond issuance is a significant milestone in the development of Singapore's ILS market," Ng Yao Loong, MAS assistant managing director, development and international group, said in the statement
"Singapore's ILS grant scheme is an excellent initiative that has played an important part in enabling this transaction to take place," David Priebe, vice chairman of Guy Carpenter & Co. LLC, said in the statement.
"The fact that we completed this inaugural ILS transaction within a few weeks demonstrates the efficiency and business-friendly regulatory environment in Singapore," Simon Goh, head of the insurance and reinsurance practice at Rajah & Tann, said in the firm's statement. “Following this successful transaction, we are optimistic that more issuers will consider coming to Singapore.”