Lovells guides Axa through motor insurance securitisation

Lovells has strengthened its ties with insurance company Axa by advising on its latest securitisation.

The Lovells team, led by capital markets practice area head Sharon Lewis, advised the firm and its French, German, Italian and Spanish subsidiaries on the €450m (£302m) securitisation of Axa’s pan-European motor insurance portfolio.

Lovells first advised Axa in 2005 on its securitisation of a motor portfolio called Sparc.

Lewis commented: “We used the template of the work we did on Sparc and applied the same principles in several different jurisdictions. The original deal made it easier for us, but there were challenges relating to jurisdictions that made it an interesting deal.”

Lewis added that dealing with a number of different regulators and attempting to find a consensus of how the transaction would work in the various jurisdictions involved added to how this particular securitisation worked.

She said: “The decision to include BB-rated notes as well as the AAA-rated, single A and BBB-rated notes originally planned added to the size and detail of the prospectus. Ultimately it was 800 pages long. This took more time and detail for us to work on.”

A Linklaters team led by banking partner Bertrand Adriani advised financial adviser Natixis on the transaction.