MinterEllisonRuddWatts Advises Toka Tū Ake EQC On The First New Zealand Originated Catastrophe Bond

Toka Tū Ake EQC today announced the placement of a NZD225 million catastrophe bond by Singapore domiciled special purpose reinsurance vehicle, Totara Re Pty Ltd, in the first catastrophe bond (cat bond) transaction originated out of New Zealand.

MinterEllisonRuddWatts acted as Toka Tū Ake EQC’s New Zealand counsel on the transaction, which will provide cat bond backed reinsurance cover to sit alongside Toka Tū Ake EQC’s traditional reinsurance programme.

New Zealand’s reinsurance needs are becoming more expensive to meet and harder to access due to the global impacts of climate change, the pandemic and the war in Ukraine. Through the cat bond transaction , Toka Tū Ake EQC has been able to support the country’s growing needs and preparedness for the risks natural hazards pose to communities.

On announcement of the transaction by Toka Tū Ake EQC, Partner Chris O’Brien said: "We are proud to work alongside Toka Tū Ake EQC on this ground-breaking, first-of-its-kind for New Zealand transaction. With the heightened level of uncertainty both here and offshore, Toka Tū Ake EQC is providing prudent leadership to help prepare for whatever lies ahead for the country."

The MinterEllisonRuddWatts team was headed by Partner Chris O’Brien, who led the New Zealand team working on the transaction structuring, the issue of the offer documents, the negotiation of a New Zealand law governed reinsurance contract, and the New Zealand public law aspects of the transaction. Chris worked with Senior Associate Adrianne Reid, with assistance from Solicitor Devesh Awmee.

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