France Develops Its ILS Market with First Reinsurance Sidecar

CCR Re recently set up 157 Re, the first reinsurance sidecar vehicle domiciled in France. 157 Re will grow CCR Re's property catastrophe (CAT) business by assuming a 25 percent quota share of CCR Re's worldwide catastrophe portfolio with fully collateralized capacity.

CCR (parent to CCR Re) is a state-owned reinsurer that provides unlimited covers against natural disasters, terrorist attacks, and other extreme risks in France, guaranteed by the French state.

157 Re is the first insurance-linked securities (ILS) instrument governed by French law and taking the form of a mutual securitization fund (fonds commun de titrisation). Previously, France used mutual securitization solely for financial assets securitization.

Willis Towers Watson Securities was the structuring agent for the transaction, which paves the way for the development of an ILS market in Paris.

Bertrand Labilloy, chairman and CEO of CCR Re, said, "By creating and sponsoring 157 Re, the first ever French insurance-linked securities instrument, CCR Re's teams have confirmed their innovative skills and mind-set, as well as their commitment to promote the Paris financial market place attractiveness and development."