Guy Carpenter and MMC Securities have completed a multi-territory, multi-peril catastrophe bond transaction, on which it has advised the Catlin Group.
The bond, which offers cover of up to $200.25m, provides Catlin with competitively priced and fully collateralized protection against severe natural catastrophes, complementing its reinsurance.
The bond will be the industry's first publicly rated collateralized debt obligation of natural catastrophe risk. The senior tranche of the transaction was AA rated by Standard & Poor's and is the first transaction linked to natural risk that has received this rating. In addition, it will be the first catastrophe bond to use Risk Management Solutions' new parametric triggers for non-US losses.
“The innovative nature of this transaction underscores our ability to leverage our deep catastrophe reinsurance experience, market knowledge and new forms of non-traditional capacity to our clients' advantage,” said Geoff Bromley, Guy Carpenter's chairman of European and Asian operations.
Perils covered by the transaction include US hurricanes (Florida, Gulf states and East Coast), Californian earthquakes, New Madrid (US Midwest) earthquakes, UK windstorms, European (excluding UK) windstorms, Japanese typhoons and Japanese earthquakes.
