Aon CATstream™ product expedites catastrophe bond coverage for cedants
CHICAGO, June 18, 2014 /PRNewswire/ -- Aon Benfield Securities, the investment banking division of global reinsurance intermediary and capital advisor Aon Benfield, today announces the launch of CATstream™ – a new client facility that offers cedants faster and more efficient access to capital markets capacity for catastrophe risk.
Featuring template documentation and pre-agreed wordings, CATstream enables catastrophe bonds to be established in less than half the time of the typical non-standardized products. With faster access to capital markets capacity, cedants can take advantage of additional risk transfer capacity in note form.
CATstream currently allows for the domiciliation of special purpose insurers (SPIs) – the vehicles utilized in the structuring of catastrophe bonds – in Bermuda and Ireland.
The streamlined documents developed for CATstream have been reviewed and approved by the associated service providers and regulators, in order that transactions can be brought to market more quickly and with lower frictional costs.
CATstream can be used to structure transactions with index and indemnity trigger structures that relate to a broad range of perils and territories, allowing clients to enjoy capacity diversification, multi-year capacity and multi-year known pricing.
Paul Schultz, Chief Executive Officer of Aon Benfield Securities, said: "We are launching CATstream at a time when the insurance-linked securities market is showing continued strength; where sponsor and investor demand for ILS products is at an all-time high. We believe that this facility can only promote the growth of the market, by enabling sponsors to secure capital markets coverage within a short timeframe for the structuring of products in strong and proven domiciles at lower frictional costs."
About Aon Benfield Securities
Aon Benfield Securities, Inc. and Aon Benfield Securities Limited (collectively, "Aon Benfield Securities") provide insurance and reinsurance clients with a full suite of insurance-linked securities products, including catastrophe bonds, contingent capital, collateralized reinsurance, industry loss warranties, sidecars and derivative products. As a recognized leader in this investment banking market, Aon Benfield Securities is helping clients to empower results by offering underwriting and placement of new issues, financial advisory services, as well as securities trading in the secondary market. Aon Benfield Securities' integration with Aon Benfield Inc's reinsurance operation expands its capability to provide analytics, modeling, rating agency, and other consultative services. Aon Benfield Inc., Aon Benfield Securities, Inc. and Aon Benfield Securities Limited are all wholly-owned subsidiaries of Aon plc. Securities advice, products and services are offered solely though Aon Benfield Securities, Inc. and/or Aon Benfield Securities Limited.
About Aon Benfield
Aon Benfield, a division of Aon plc, is the world's leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world's markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals' expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.
Aon plc (NYSE: AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.
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