The first securitization of river flooding risk in Great Britain has been completed.
Risk Management Solutions (RMS) says it performed the risk analysis for the securitization.
The securities were issued by Blue Wings, which also covers North America earthquake risk, providing $150m of collateralised cover for Allianz Global Corporate & Specialty AG as part of a $1bn programme, structured and placed by Swiss Re.
The transaction is the first securitization of Great Britain river flood risk. The flood solution, researched and designed by RMS Consulting, uses a parametric trigger of flood depths as measured after the occurrence of a significant flood event, at a strategically-selected set of reference locations.
Marc Hannebert, project manager at Allianz Global Corporate & Specialty commented: "The involvement of RMS in this project was key, particularly in some critical phases where they provided the innovation we needed to build a robust index that ultimately investors appreciated."