Cadwalader Advises on Pair of Insurance-linked Securities Transactions Shortlisted for 2019 Trading Risk Awards

Apr 29, 2019

Cadwalader, Wickersham & Taft LLP, a leading counselor to global financial institutions, corporations and funds, advised on two insurance-linked securities transactions shortlisted for 2019 Trading Risk Awards. Trading Risk covers the convergence of the insurance industry and capital markets, including catastrophe bond transactions, collateralized reinsurance and industry loss warranties.

Cadwalader acted as transaction counsel to mutual insurer of essential public-purpose U.S. municipal bonds Build America on the Fidus Re insurance-linked bond, a finalist for Life Transaction of the Year Award. Fidus Re provides protection to Build America in respect of a portfolio of public-purpose municipal bonds.  It is the first insurance-linked bond transaction to cover financial guaranty insurance risk and the first to cover municipal bonds.  Goldman Sachs & Co. LLC acted as underwriter.

Cadwalader also acted as underwriter counsel to Goldman Sachs & Co. LLC and Munich Re on the Vitality Re X Ltd. catastrophe bond, a finalist for the Life Transaction of the Year Award. Vitality Re provides protection to U.S. health insurance company Aetna in respect of excess of loss coverage for medical benefit claims. The Vitality Re program represents the first and largest catastrophe bond program to provide cover on medical benefits for a health insurer. 

“It is a great honor to be acknowledged once again by Trading Risk for our innovative work on behalf of our clients,” said Michael Gambro, co-chair of Cadwalader’s Capital Markets practice.

Added Stuart Goldstein, the firm’s Capital Markets co-chair in Charlotte: “Trading Risk has once again showcased the top insurance-linked securities transactions around the world. With our exceptional practice in the U.S. and in Europe, we are able to provide guidance on complex and high-impact transactions for our insurer and arranger clients.”

Cadwalader’s insurance-linked securities team includes partners Frank Polverino and Ira Schacter and special counsel Matthew Feig in New York, partner Robert Cannon and special counsel Michael Sholem in London, and lawyers from across the firm’s capital markets, financial regulation, tax and corporate practices.

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