Travelers launches $500m cat bond for northeast hurricanes

Travelers raised $500m selling catastrophe bonds, the biggest this year, Bloomberg reports.

Catastrophe-bond issuance in 2009 may reach $3.5bn, exceeding the $2.7bn placed in 2008, said Paul Schultz, president of Aon Benfield Securities.

Travelers’ Longpoint Re bonds covers hurricane damage in the US Northeast. Travelers offered to pay 5.4 percentage points above the yield on three-month US Treasury bills. The funds go to the insurer if hurricanes in the region cause more than $2.25bn in losses. Travelers arranged its original $500m Longpoint Re bond in 2007.

The coverage is split into two bonds of $250m each, which provide protection for events occurring on or before 18 December 2012, and on or before 18 December 2013.

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The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

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