Willis Capital Markets has acted as co-lead manager of an offering of $100 million of notes linked to the occurrence of earthquakes in California.

The notes, which have been issued by Ajax Re Ltd. as part of a $1 billion shelf program, provide reinsurance protection to Bermuda-based Aspen Insurance Ltd.

Lehman Brothers acted as sole initial purchaser and book-runner for the transaction. The proceeds of the notes collateralise a reinsurance agreement between Ajax Re Limited and Aspen.

Loss payments under the reinsurance agreement are triggered by estimated insured property losses as reported by Property Claims Services.

The notes, were rated BB by Standard & Poor’s and b+ by AM Best, and mature on May 9, 2009.

The program allows Ajax Re to issue further series of notes to provide Aspen with up to $1 billion of protection, in respect of any perils, at any given time.

Mark Hvidsten, CEO of Willis Capital Markets, said: “We are delighted to have acted as co-lead manager of the Ajax Re notes issue. This transaction provides Aspen with catastrophe reinsurance at attractive terms. The ability to execute capital markets transactions is an essential part of the tool kit that enables us to provide our clients with the full spectrum of risk transfer solutions.”

Joe Plumeri, chairman and CEO, Willis Group said: “We are constantly developing ideas and innovative approaches to risk management in order to better serve our clients. Our sophisticated analytics and our proven ability to deliver all forms of risk transfer, including catastrophe risk securitisations, help us provide better solutions to our clients.”

Plumeri this week said private equity funds planning to buy USI Holdings Corp. and Hub International Group, are paying too much for the brokers.

“I think they're very expensive,” said Plumeri in an interview in New Orleans with Bloomberg. “I don't know how they'll make money.”

Morgan Stanley and Apax Partners Worldwide LLP agreed in March to buy Chicago-based Hub, the 12th-largest U.S. broker, for $1.8 billion in cash and $145 million in debt. In January, Goldman Sachs Group Inc.'s buyout unit agreed to purchase No. 9 USI, of Briarcliff Manor, New York, for $1.4 billion in cash and debt.