5 October, 2011 – Mayer Brown, a leading global law firm, served as lead counsel on a transaction that was named the “Insurance-Linked Securities Deal of the Year” in the 2011 Reactions Global Awards sponsored by Reactions, a leading publication serving the reinsurance and risk transfer market. It was selected, along with other award winners, through a poll of Reactions’ readers.
The winning deal was Embarcadero Re’s issuance of a $150 million catastrophe bond that collateralized a reinsurance agreement with the California Earthquake Authority (CEA). The transaction demonstrates that the cost of catastrophe bond coverage can be comparable to or lower than equivalent reinsurance coverage.
Mayer Brown initially was retained by Deutsche Bank as structuring counsel to help the bank work through the unique issues presented when a government agency such as the CEA attempts to transfer catastrophe risk to capital market investors. When those issues were resolved, the firm’s role shifted to deal and issuer’s counsel for Embarcadero Re.
The Mayer Brown team was led by New York Insurance Industry Group partners Keith Andruschak and Paul Forrester and included lawyers from the firm’s Banking & Finance, Corporate & Securities and Tax Transactions practices.