The transaction, which closed on December 8, and expires in early 2015, provides the State Fund with $200 million of multi-year, fully collateralized protection against workers’ compensation claims as a result of U.S. earthquakes. Coverage is on a per-occurrence basis and the transaction features a modeled loss trigger which provides the State Fund with a relatively rapid payout post-event.
Tony Ursano, CEO, Willis Capital Markets & Advisory said, “Our involvement in the transaction reinforces our view that there is substantial investor demand, even for minimum rate-on-line deals. We expect investors to continue to welcome well structured deals bringing them new risks and new sponsors, and we are fully equipped to sole structure and place such transactions.”