Benfield has partnered Merrill Lynch to offer insurers and reinsurers catastrophe bonds as a form of alternative capital for peak risk exposures.
Grahame Chilton, chief executive of Benfield, said: "Following two successive years of record catastrophe losses, many insurers and reinsurers are now exploring alternatives to traditional sources of capacity to protect themselves against losses from natural catastrophes.
Rob Bredahl, chief executive of Benfield Advisory, said: Cat bonds provide an excellent platform for a broader range of investors because they are rated securities that lend themselves to quantitative analysis for a more transparent evaluation of risk and reward."
