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    Willis Capital Markets & Advisory Completes Innovative $200 million ‘Golden State Re’ Cat Bond for State Fund

    --First Workers’ Compensation Cat Bond for U.S. Earthquakes--

    New York, December 12, 2011 – Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings (NYSE: WSH), the global insurance broker, today announced that it has structured and placed a $200 million catastrophe bond transaction for the State Compensation Insurance Fund (“State Fund”), the largest writer of workers’ compensation business in California. The Golden State Re Ltd. transaction is the first cat bond designed exclusively to protect a portfolio of workers’ compensation exposures.

    The transaction, which closed on December 8, and expires in early 2015, provides the State Fund with $200 million of multi-year, fully collateralized protection against workers’ compensation claims as a result of U.S. earthquakes. Coverage is on a per-occurrence basis and the transaction features a modeled loss trigger which provides the State Fund with a relatively rapid payout post-event.

    Tony Ursano, CEO, Willis Capital Markets & Advisory said, “Our involvement in the transaction reinforces our view that there is substantial investor demand, even for minimum rate-on-line deals. We expect investors to continue to welcome well structured deals bringing them new risks and new sponsors, and we are fully equipped to sole structure and place such transactions.”

    About Willis:

    Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at www.willis.com.

    About WCMA:

    Willis Capital Markets & Advisory (WCMA), with offices in New York and London, provides advice to insurance and reinsurance companies on a broad array of mergers and acquisition transactions as well as capital markets products. WCMA is a marketing name used by Willis Securities, Inc. (WSI), a licensed broker dealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC, and Willis Capital Markets & Advisory Limited (WCMAL), an investment business authorized and regulated by the UK Financial Services Authority. Both WSI and WCMAL are Willis Group (Willis) companies. Securities products are offered in the U.S. through WSI and in the U.K. through WCMAL.

    This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy, or, except with respect to an accompanying confirmation of transaction sheet, as a confirmation of terms of the purchase or sale of, any security. The information contained herein is as of this date only, is subject to change and does not contain all information necessary to adequately evaluate an investment in any financial instrument. Information contained in this communication may not reflect information known to other employees in any other business areas of Willis Group and its affiliates.

    All the securities referred to herein having been sold, this announcement is a matter of record only. This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.


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