GC Securities* Completes Catastrophe Bond Pelican III Re Ltd. Series 2015-1 Notes for Louisiana Citizens Property Insurance Corporation

GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today announced the placement of the Series 2015-1 Notes, with notional principal at $100,000,000, through a newly formed Bermuda domiciled catastrophe bond shelf program, Pelican III Re Ltd., to benefit Louisiana Citizens Property Insurance Corporation (“LA Citizens”). This is the third time that LA Citizens has utilized the cat bond market to manage its tropical cyclone risks.

The Series 2015-1 Notes are positioned alongside traditional reinsurance of LA Citizens’ reinsurance program to provide per occurrence protection from tropical cyclone-related losses. The Series 2015-1 Notes replaces LA Citizens’ maturing catastrophe bond protection by providing three years of risk transfer protection at 56 percent price reduction and improved structural features, including broader definition of Named Storms, addition of a liquidity feature to advance the next 30 days’ worth of expected claims payments and increased flexibility with respect to the annual reset option.

GC Securities served as sole structurer and sole bookrunner.

RISK PROFILE

QUOTES

Steve Cottrell, Chief Financial Officer, Louisiana Citizens Property Insurance Corporation

“Louisiana Citizens Property Insurance Corporation was very pleased with the investor demand for our catastrophe bond, Pelican III Re. Catastrophe bonds are an important part of our total reinsurance strategy.”

David Priebe, Vice Chairman of Guy Carpenter

“This transaction exemplifies the benefit of the convergence between the reinsurance and capital markets and demonstrates the value that Louisiana Citizens achieved in utilizing the catastrophe bond market to meet its risk transfer needs. GC Securities is honored to have assisted LA Citizens in the offering of the Series 2015-1 Notes.”

Cory Anger, Global Head of ILS Structuring, GC Securities

“We are honored to have brought LA Citizens back to the catastrophe bond market and delivered further reinsurance program savings for LA Citizens and its constituents. In addition to complementing LA Citizens’ traditional reinsurance program and continuing to diversify its risk transfer capacity sources, the Series 2015-1 bonds (as well as the Pelican III Re shelf program) provide the latest structural features to LA Citizens.”

Chi Hum, Global Head of ILS Distribution, GC Securities

“The capital markets support for LA Citizens was broad and a strong endorsement for this well- structured, residual market capacity program. The market rewarded the efforts by LA Citizens and the broker team to find the optimal mix of capital markets and traditional reinsurance. LA Citizens should take this as a signal of the continuing future support that the capital markets can and will provide going forward. GC Securities thanks LA Citizens and the capital markets investors for the successful execution of the series 2015 Pelican III Re bond issuance.”

TAGS/KEYWORDS

Guy Carpenter, GC Securities, Pelican III Re, catastrophe bond, cat bond, Louisiana Citizens Property Insurance Corporation, Cottrell, Priebe, Anger, Hum

About Guy Carpenter

Guy Carpenter & Company, LLC is a global leader in providing risk and reinsurance intermediary services. With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and delivers capital market solutions* for clients across the globe. The firm’s full breadth of services includes line-of-business expertise in agriculture; aviation; casualty clash; construction and engineering; cyber solutions; excess and umbrella; excess and surplus lines; healthcare & life; marine and energy; mutual insurance companies; political risk and trade credit; professional liability; property; public sector; retrocessional reinsurance; surety; terrorism and workers compensation. GC Fac® is Guy Carpenter’s dedicated global facultative reinsurance unit that provides placement strategies, timely market access and centralized management of facultative reinsurance solutions. In addition, GC Analytics®** utilizes industry-leading quantitative skills and modelling tools that optimize the reinsurance decision-making process and help make the firm’s clients more successful. For more information, visit www.guycarp.com and follow Guy Carpenter on Twitter @GuyCarpenter.

Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy, and people. With annual revenue of $13 billion, Marsh & McLennan’s 57,000 colleagues worldwide provide analysis, advice, and transactional capabilities to clients in more than 130 countries through: Marsh, a leader in insurance broking and risk management; Mercer, a leader in talent, health, retirement, and investment consulting; and Oliver Wyman, a leader in management consulting. Marsh & McLennan is committed to being a responsible corporate citizen and making a positive impact in the communities in which it operates. Visit www.mmc.com for more information.

*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

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