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Nationwide, Munich Re market catastrophe bonds

Colleen McCarthy

May 03, 2010 Reprints

Catastrophes P/C Insurers Munich Re More + Less -

COLUMBUS, OhioNationwide Mutual Insurance Co. plans to launch a $200 million catastrophe bond to cover part of its U.S. hurricane exposures, a market source confirmed Monday.

Separately, Munich Reinsurance Co. plans to put in place a $100 million catastrophe bond to protect itself from U.S. and European wind exposures, the source said.

Nationwide’s bond, Caelus Re II Ltd., is being marketed to investors and is expected to close this week, the source said. The Columbus, Ohio-based insurer placed a $250 million catastrophe bond in July 2008 for similar coverage through its Cayman Islands-based special-purpose vehicle, Caelus Re Ltd.

Munich Re’s bond, Eos Re Ltd, also is being marketed to investors and is expected to close this month, the source confirmed. Eos Re Ltd. is a Dublin-based special-purpose vehicle established by the Munich, Germany-based reinsurer.

Experts have predicted increased catastrophe bond activity leading up to the June 1 start of the Atlantic hurricane season amid favorable market conditions for sponsors.

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Nationwide, Munich Re market catastrophe bonds

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