Filed Under:Risk Management, Loss Control

New York's Transit Authority to Sell $125M Catastrophe Bond

Floodwaters stream into the Long Island Railroad's West Side Yard in New York during Superstorm Sandy. (AP Photo/MTA)
Floodwaters stream into the Long Island Railroad's West Side Yard in New York during Superstorm Sandy. (AP Photo/MTA)

New York's Metropolitan Transportation Authority (MTA), the biggest transportation network in North America, is selling a $125 million "catastrophe" bond designed to cover the costs of damage from a future storm or hurricane, investors said on Monday.

The MTA, which suffered a $5 billion hit from Hurricane Sandy in October 2012, will be able to offload the risk of incurring similar storm-related losses to investors, who will receive a yield in return for agreeing to pick up future repair bills.

Featured Video

Most Recent Videos

Video Library ››

Top Story

15 tips for driving safely on ice and snow

More than 800 people die each year in the U.S. in vehicle crashes caused by snow, sleet and freezing rain.

Top Story

PIA's national president was born to insure

Robert W. Hansen Jr., a fourth-generation insurance professional, reflects on what drives him to keep selling after more than 30 years in the business.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.