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Matthew Lerner

Aon Benfield Securities places $250M cat bond for Australian risks

January 7, 2014 - 12:50pm


Aon Benfield Securities, the investment banking division of Aon Benfield, has placed a $250 million catastrophe bond issued by special purpose insurer VenTerra Re Ltd. for Australian perils, Aon Benfield said Tuesday.

Bermuda-domiciled VenTerra Re Ltd. provides subsidiaries of Sydney-based QBE Insurance Group Ltd. with $250 million of multiyear collateralized protection against U.S. and Australia earthquakes and Australia cyclones on an indemnity basis for a period of three years beginning Jan. 1, the first-ever catastrophe bond that has secured coverage for Australian perils for a primary insurance company on an indemnity basis, according to the statement.

“We are pleased to have successfully placed VenTerra Re Ltd. on terms attractive to QBE, with coverage substantially similar to what QBE has been able to secure in the traditional reinsurance market. VenTerra Re Ltd. was very well received by investors, who welcomed the addition of a new sponsor to the market,” Paul Schultz, Chicago-based CEO of Aon Benfield Securities, said in the statement.