Guy Carpenter & Company Inc., a subsidiary of Marsh & McLennan Companies, and MMC Securities Ltd., an affiliate of Guy Carpenter, completed a multiterritory, multiperil catastrophe bond transaction.
The bond will offer coverage of up to $200.25 million in the event of a series of severe natural catastrophes on an aggregate basis.
The bond will provide the Catlin Group, a Bermuda-based underwriter of insurance and reinsurance, with competitively priced and fully collateralized protection against severe natural catastrophes, complementing the protection that it already purchases through the traditional reinsurance marketplace, the broker said.
Guy Carpenter said the bond, which is being brought to market by ABN AMRO London, will be the industry's first publicly rated collateralized debt obligation for natural catastrophe risk.
Perils covered by the transaction include U.S. hurricanes (Florida, Gulf States and East Coast); Californian earthquakes; New Madrid (U.S. Midwest) earthquakes; U.K. windstorms; European (excluding U.K.) windstorms; and Japanese typhoons and earthquakes.
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