Cadwalader has advised on over 150 insurance-linked securities transactions with total issuance valued in excess of $30 Billion
Cadwalader lawyers have been involved in many of the most high-profile and innovative capital markets transactions for insurance and reinsurance. In addition to insurers and reinsurers, we represent banks, hedge funds, private equity funds, underwriters, credit enhancers, selling security holders, and their financial advisors in developing transactions and products tailored to the insurance and reinsurance industry that help disintermediate risk, and improve asset and liability management within the confines of insurance regulation.
These include alternative insurance products such as catastrophe bonds, industry loss warranties, sidecars, extreme mortality bonds, embedded value securitizations, life settlement funds/securitizations, premium finance programs, life/annuity arbitrage securitizations, synthetic securitizations, and securitization of Triple X reserves and other assets. Our lawyers also structure insurance policies and reinsurance contracts to embed capital markets components.
Our lawyers have worked on many innovative catastrophe and extreme mortality bond structures, including single, multi-peril, and second event bonds, indemnity, modeled loss, indexed and parametric loss transactions, reinsurance, and retrocessional and counterparty agreement coverage. Cadwalader has also played a significant role in the emergence of the sidecar, another capital markets response to times of capacity constraints in the traditional property catastrophe reinsurance market. These transactions typically involve the formation of a special purpose reinsurer to provide short-term reinsurance coverage for specified lines of business written by a particular insurer or reinsurer.
We also work with insurance companies to develop innovative customized products for sale to pension plans and other institutional investors, and advise on tax-advantaged insurance and insurance-related financial investments. Cadwalader is at the forefront of developing innovative capital markets instruments on behalf of property and casualty insurers that have municipal bond holdings and tax loss or alternative minimum tax positions. In addition, we work with insurance companies to develop capital markets instruments to finance large municipal bond portfolios on a leveraged tax-exempt basis.
Cadwalader has also represented monoline financial guaranty insurers in transactions in which they provide financial guaranty insurance in their traditional business and in contingent capital transactions (including Triple X). Financial guarantee insureds look to Cadwalader for advice as to compliance with applicable financial guaranty insurance laws and to assist with workouts and troubled situations.