Munich Re formed a $75 million catastrophe bond to address named storm exposure in the U.S and cyclones affecting Australia.
GC Securities, a division of MMC Securities Corp., says it placed the Principal At-Risk Notes through a newly formed catastrophe bond, Queen Street Re VIII Ltd., to benefit Munich Re.
This is the eighth Queen Street cat bond to benefit Munich Re and the seventh overall cat bond issuance benefitting Munich Re since 2011.
The note provides two and a-half years of per occurrence protection for named storms affecting the U.S. and close to three years of per occurrence protection for cyclones affecting Australia.
The protection is the first time that Munich Re has obtained protection against Australia cyclones through the capital markets, says GC Securities.
GC Securities served as sole bookrunner on the transaction and raised $500M of catastrophe bond protection for Munich Re since 2011 through the offering of five of the eight Queen Street catastrophe bonds issued.
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