5 August, 2011 – Mayer Brown, a leading global law firm, served as lead deal counsel for Embarcadero Re, the issuer of a $150 million catastrophe bond that collateralizes a reinsurance agreement with the California Earthquake Authority (CEA).
The firm also represented Deutsche Bank Securities, sole structurer and bookrunner for the sale of the bonds to investors. While Mayer Brown was originally retained by Deutsche Bank as R&D and structuring counsel, the team’s role shifted to issuer’s and lead counsel.
The transaction demonstrates that the cost of catastrophe bond coverage can be comparable to or lower than equivalent reinsurance coverage. The issuance is also significant because the status of the CEA as a state agency raised several novel issues that required innovative solutions.
Lawyers from Mayer Brown’s Banking & Finance practice and Insurance Industry Group advised on the catastrophe bond issuance. The team included: Insurance Industry Group partners Keith Andruschak (both New York) and Banking & Finance partner Paul Forrester (Chicago).
View Mayer Brown’s Insurance Industry Group page.