Aon has introduced a new private placement catastrophe bond platform via its investment banking arm, Aon Securities.

The Randolph Re platform broadens Aon’s insurance-linked securities (ILS) offering, helping clients execute private placement transactions above $US25 million ($36.71 million) in issuance size. The bonds will be tradeable in the secondary market.

The new platform is designed for efficient and fast execution, Aon Securities CEO Paul Schultz says.

Randolph Re gives clients the benefit of syndicated collateralised cover with streamlined deal execution and documentation. It encourages a broader range of ILS clients, enabling smaller deal sizes and transactions that are integrated into various parts of re/insurance programs, providing flexibility for clients.

The private placement catastrophe bonds will be issued via special purpose vehicle White Rock Insurance Bermuda, with Aon providing management services.

“Randolph Re fits neatly into the continuum between bilateral collateralised reinsurance and more broadly syndicated catastrophe bonds,” Mr Schultz said.