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Global Insurance Industry Practice Overview Global Insurance Industry Insurance-Linked Securities, Sidecars, Dedicated ILS Funds & Other Third Party Capital Management Insurance-Linked Securities, Sidecars, Dedicated ILS Funds & Other Third Party Capital Management TABLE OF CONTENTS Global Insurance Industry Group ................................................. 2 Insurance-Linked Securities ........................................................... 2 Sidecars, Dedicated ILS Funds & Other Third Party Capital Management ....................................................................................... 4 Other P&C Alternative Risk Transfers & Structured Finance ................................................................................................... 6 MAYER BROWN | 1 Known for: “Advising on significant Global Insurance Industry Group insurance transactions and possesses particular knowledge in the sidecar and Mayer Brown is a leading global law firm with 1,600 lawyers located in offices across the catastrophe bond spaces....they have Americas, Asia and Europe. an in-depth understanding of insurance-linked securities and life Our Global Insurance Industry Group represents industry reserve financing issues.” insurers and reinsurers, as well as brokers, banks ~ Chambers USA: Insurance and investors, in a range of transactional matters that include strategic mergers and acquisitions, Our New York, London and Chicago based team capital raising, and sophisticated insurance has represented clients in a wide variety of structured finance at the convergence of transactions at the intersection of insurance and insurance markets and the broader capital the capital markets, including catastrophe bonds, markets. Drawing upon Mayer Brown’s diverse mortality bonds, sidecars, “transformers” and specialties, we take a team-oriented and credit- and event-linked products. interdisciplinary approach to better serve our insurance industry clients. Insurance-Linked Securities Sources say: "The attorneys have a lot We have represented sponsors, arrangers, initial of experience and are very responsive, purchasers, and investors on numerous offerings of catastrophe bonds, extreme mortality bonds, pay attention to detail and think and other insurance-linked securities over the through issues." past decade. In the past five years alone, we have "They are thorough, creative and when completed more than 100 ILS offerings, more than any other law firm. Among these offerings, they come up against an issue they more than 30 were for first-time sponsors. think of ways around it. They are a joy to work with." In 2019, we were recognized at the Trading Risk ~ Chambers USA: Insurance Awards as Financial Facilitator of the Year. We were again nominated for this award in 2020. Many of our recent transactions have broken Mayer Brown’s ILS and convergence practice is a new ground in the convergence of capital and natural outgrowth of the firm’s commitment to insurance markets, which are further detailed the insurance industry, its dominant global below. structured finance practice and its deep experience in private investment funds. Mayer We acted as deal counsel in the establishment Brown has one of the largest structured finance of, and the inaugural catastrophe bond practices in the world—and with that size comes offering by, the Phoenician Re program, which the knowledge, experience and staffing to tackle provides multi-year earthquake catastrophe transactions of any scale and complexity in coverage for Alphabet and its subsidiary multiple jurisdictions. We have been at the Google. cutting edge of securitization from its early days We represented the California electric and gas more than 30 years ago and have securitized the utility, PG&E, and Cal Phoenix Re, Ltd., the broadest range of asset and risk types. issuer, in the $200 million 144A insurance We acted as deal counsel in the establishment linked securities offering that transferred to of, and the inaugural catastrophe bond the capital markets PG&E’s risk of third party offering by, the Power Protective Re program, liability for property damage caused by providing wildfire risk coverage to the Los wildfires in Northern California. The Angeles Department of Water and Power. transaction represents the first transfer of The establishment of, and the first two wildfire risk to the capital markets by a offerings by, SD Re Ltd., which provided its corporate entity not an insurance company. sponsor Sempra Energy with risk capital for The largest offering by a private insurer in the the risk of third party liability for property history of the ILS market: $1.275 billion Galilei damage caused by California wildfires. Re for the benefit of XL Catlin companies on We represented the countries of Colombia and an indexed loss basis. Peru in a record World Bank catastrophe The first ILS offering to benefit a federal bond offering that provides Colombia, Peru, agency: FloodSmart Re Ltd., covering flood risk Chile and Mexico with protection from of the National Flood Insurance Program catastrophic earthquakes. administered by FEMA. The establishment of the Kilimanjaro Re We were deal counsel on the first earthquake catastrophe bond program sponsored by catastrophe bond for the benefit of the Everest Re, now the largest sponsor of California Earthquake Authority and on a outstanding catastrophe bonds. We here acted dozen follow-on offerings with the most as issuer’s counsel in all six Kilimanjaro Re recent being the $775 million Ursa Re II offeringsl. completed in October. The first catastrophe bond offering providing We acted as deal counsel in each of the Alamo coverage for earthquake risk in mainland Re named storm and severe thunderstorm China on an indemnity basis. The placement catastrophe bond offerings for the benefit of by Panda Re was the first insurance-linked the Texas Windstorm Insurance Association securities offering by a Chinese sponsor, China (TWIA), the state-sponsored residual market Re Group, the largest reinsurance company in entity in Texas. The inaugural offering was in China. 2014 and follow-on offerings were completed The first catastrophe bond making use of the in 2015, 2017, 2019 and 2020. The Alamo Re recently enacted UK ILS regulatory and tax transactions were intermediated by Hannover regime: Atlas Capital UK 2018 PLC for the Re, and we advised on the unique collateral benefit of SCOR on an indexed loss basis. and tax structure to meet TWIA’s objectives. Acted on the first motor liability ILS We acted as deal counsel in the catastrophe transaction in more than a decade: the €255 bond offering sponsored in 2018 by Louisiana million bond offering by Irish domiciled Horse Citizens Property Insurance Corporation, Capital for the benefit of Generali. the state-sponsored residual market insurer in Louisiana, and as underwriters’ counsel in its The first catastrophe bond offering for the offerings in 2012, 2013, 2015, 2017, 2018 and benefit of The Covéa Group, one of the 2020. MAYER BROWN | 3 largest insurers in France, providing protection Nipponkoa Insurance Company. The from losses associated with windstorms. transaction was structured on an indemnity basis and was the first of its kind to be We acted as deal counsel in the MetroCat Re denominated in yen. Ltd catastrophe bond offering for the benefit of New York’s Metropolitan Transportation Inaugural catastrophe bond programs for Authority (MTA), the largest transportation numerous companies and state-sponsored network in North America. This transaction residual market entities, including Allstate, was the first storm-surge catastrophe bond in Argo Re, Everest Re, Generali, Great American, history and the first time the MTA accessed Heritage, Liberty Mutual, Nationwide, QBE, the capital markets to obtain insurance State Farm, UnipolSai (Italy), XL Catlin, Texas protection from events like Super storm Sandy Windstorm Insurance Association, in 2012. This transaction was named 2014 Massachusetts Property Insurance Indemnity “Non-Life Transaction of the Year” by Trading Association, Louisiana Citizens, and Florida Risk Magazine and Bond Buyer’s 2013 Deal of Citizens. the Year award for “Non-Traditional Financing.” Also, the Financial Times recognized Sidecars, Dedicated ILS Funds & Mayer Brown among the “most innovative” 2013 US law firms ranking this transaction as a Other Third Party Capital “Standout,” its highest ranking. Management We acted as deal counsel in each of the Mayer Brown has been at the forefront of the Cranberry Re catastrophe bond offerings for development of third-party risk capital the benefit of Massachusetts Property arrangements in the insurance and reinsurance Insurance Underwriting Association markets. We are a leading firm in advising on (MPIUA), the Massachusetts state-sponsored sidecar and dedicated insurance risk fund residual entity. The inaugural offering was in transactions. 2010 and follow-on offerings were completed We represented Everest Re Group in in 2015 and 2017, providing in aggregate establishing Mt. Logan Re, the largest sidecar more than $1 billion of risk capital. These in the market. transactions were also intermediated by Hannover Re. We represented Peak Re in establishing and launching the first Asian reinsurance sidecar, We acted as deal counsel in the March 2013 Lion Rock Re. catastrophe bond offering by Tar Heel Re, which provided $500 million of collateralized We represent the investment manager in the indemnity reinsurance to the NCJUA and formation this year of a dedicated NCIUA,
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