Advertise
Resources
Member, Beacon International Group, Ltd.
Aon Benfield Securities, the investment banking arm of reinsurance brokerage Aon Benfield Group Ltd., has placed an indemnity-based catastrophe bond to cover a European reinsurer for losses from European windstorms.
The bond, Windmill 1 Re Ltd., provides Tilburg, Netherlands-based Achmea Reinsurance Co. N.V. with €40 million ($54.2 million) of collateralized protection against European windstorm for a period of three years starting Jan. 1, 2014, Aon Benfield Securities said Wednesday in a statement.
The bond is the first indemnity-based bond to provide a European sponsor with protection against European windstorm losses, Aon Benfield Securities said.
Under an indemnity trigger, the triggering event for the bond is an actual loss incurred by the bond's sponsor following a specified catastrophic event in a particular geographic area for a specified line of business.
“We are very happy with the coverage secured via Windmill I Re Ltd., the first catastrophe bond sponsored by our company,” Roelant de Haas, chairman of the board at Achmea Re, said in the statement.
“The objective of this transaction was to secure efficiently priced capital on terms substantially similar to the traditional reinsurance market,” Paul Schultz, CEO of Aon Benfield Securities, said in the statement. “The streamlined offering also makes catastrophe bonds available in smaller notional sizes on an economical basis.”