Catastrophe bond sales this year totaled $4.4 billion with the announcement today that Munich Re has issued a $190 million California earthquake bond, an investment bank reported.
Bank of America Equity Research said the total is up from about $2 billion in cat bonds issued in 2005, citing data from the reinsurance broker Benfield Group.
It said the Munich Re-sponsored cat bond–issued by Cayman Islands-based Lakeside Re Ltd.–will cover losses to Zurich American Insurance Company in the event of a California earthquake.
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