Aon Capital Markets said it has placed a $225 million catastrophe bond for Newton Re Limited to cover earthquake and hurricane risks.
Aon Capital, the investment arm of Chicago-based insurance broker Aon Corp., explained it made a private placement of the $225 million catastrophe bond for Cayman Island-based Newton Re, a newly created special purpose vehicle. The deal also involved J.P. Morgan Securities in assisting in placing the coverage.
The placements will provide reinsurance coverage to Bermuda-based Catlin Insurance Company Ltd. with fully collateralized catastrophe protection of $87.5 million for U.S. earthquake risk and $137.5 million for U.S. hurricane risk.
A.M. Best assigned debt ratings of "double-b-plus" to the earthquake risk and "double-b-minus" to the hurricane risk portion of the notes. Both are due Dec. 24, 2010.
The bonds are not registered in the United States and cannot be sold in the United States or to U.S. citizens.
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