Willis Places Weather Transaction Protection Cover Against Cyclone Risk

(RTTNews) - Risk adviser Willis Group Holdings (WSH) has placed an innovative derivative-based risk transfer solution to protect mining, rail and port venture Roy Hill Holdings Pty Ltd against the threat of cyclones and heavy rainfall delaying the construction of what would be the largest single-site iron ore mining operation in Australia.

The transaction was completed ahead of the 2013 cyclone season. It is backed by Endurance Global Weather, a global provider of weather risk management solutions and a subsidiary of Endurance Specialty Holdings Limited (ENH).

Under the coverage, Roy Hill is protected from the financial impact of a named cyclone passing through a specified geographic area, which encompasses the company's 55 million tonne per annum mining, rail and port project under construction in the Pilbara region of Western Australia.

The transaction has a total limit of A$56 million and spans two cyclone seasons. It responds to cyclone and rainfall events occurring during the period of construction leading up to the mine becoming operational in 2015.