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Member, Beacon International Group, Ltd.
Allianz S.E. secured an additional placement of $175 million to its existing catastrophe bond shelf program, the insurer said Friday.
Known as Blue Danube II Ltd., the Bermuda-based special purpose vehicle covers U.S. and Canadian earthquake as well as named storm losses in certain portions of the U.S., Caribbean and Mexico for three years for Allianz Argos 14 GmbH, a wholly owned subsidiary of Munich-based Allianz S.E.
Swiss Re Capital Markets and GC Securities, a division of broker-dealer MMC Securities Corp., served as joint structuring agents and bookrunners on the transaction.
The bond employs a modeled industry trigger, which takes industry loss estimates for the U.S. and Canada and weighs them based on certain applicable modeled portfolios to trigger the bond.
“We are very pleased to continue to support Allianz S.E.'s access to capital markets capacity,” Jean-Louis Monnier, director and head of ILS Europe at Swiss Re Capital Markets, said in a statement. “This new transaction uses a (modeled industry trigger transaction) trigger and complements last year's Blue Danube issuance, providing Allianz S.E. with a multiyear cover against named storm and earthquake losses in North America, the Caribbean and Mexico."
Cory Anger, global head of ILS structuring at GC Securities, said the deal demonstrates investor willingness to embrace flexible catastrophe bond structures.
“Allianz’s experience as a repeat cat bond sponsor allowed it to take advantage of market conditions with respect to garnering favorable terms/conditions, pricing and capacity,” Ms. Anger said in a statement. “For example, expanding the protection to a named storm basis for the U.S., Mexico and the Caribbean region was an important structural consideration for Allianz in the Series 2013-1 Notes.”