Mayer Brown represented China Re Group, the largest reinsurance company in China, in the first insurance-linked securities offering by a Chinese sponsor. The offering was made by Panda Re, a Bermuda special purpose insurer, to institutional investors in the US, Bermuda and Europe and was arranged by GC Securities, a division of MMC Securities Corp. The transaction provided China Re with US $50 million of per occurrence protection from earthquakes in The People’s Republic of China (excluding Hong Kong and Macau) on an indemnity basis. The transaction also represents the first time investors have gained exposure to Chinese perils.

China’s official state news agency described the transaction as a historic achievement for the country’s insurance industry, and the chairman of China Re Group, Peiyu Li, stated in press reports that this transaction “is the first step by China’s insurance industry to access the international capital markets for risk capital” and “is also a milestone in our company’s efforts to promote globalization and creativity.”

The Mayer Brown team included partners Stephen Rooney, Richard Spitzer, (Henry) Hong Liu (all New York), Stephen Walsh (London) and George Craven (Chicago) and associates Daniel Scher, James Jiang (both New York) and Angeli Sunmonu (London).