NU Online News Service, Dec. 14, 10:54 p.m.EST

Willis Capital Markets & Advisory, part of insurance brokerWillis Group Holdings, announced that it has structured and placeda $200 million catastrophe bond transaction for the StateCompensation Insurance Fund, the largest writer of workers'compensation business in California.

Willis says the Golden State Re Ltd. transaction is the firstcat bond designed exclusively to protect a portfolio of workers'comp exposures.

The transaction, which closed on Dec. 8, expires in early2015. The bond provides the State Fund with $200 million ofmulti-year, fully collateralized protection against workers' compclaims as a result of U.S. earthquakes.

Coverage is on a per-occurrence basis and the transactionfeatures a modeled loss trigger which provides the State Fund witha relatively rapid payout post-event.

Tony Ursano, chief executive officer of Willis Capital Markets& Advisory says in a statement, “Our involvement in thetransaction reinforces our view that there is substantial investordemand, even for minimum rate-on-line deals. We expect investors tocontinue to welcome well structured deals bringing them new risksand new sponsors, and we are fully equipped to sole structure andplace such transactions.”