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Aon Benfield completes $345M cat bond placement for Kizuna Re II


Aon Benfield Securities, the investment banking division of Aon Benfield Group Ltd., has placed has completed its placement of a $245 million catastrophe bond for Kizuna Re II Ltd., Aon Benfield said Tuesday.

The placement provides Tokio Marine & Nichido Fire Insurance Co. with fully collateralized catastrophe protection for Japanese earthquake risk, Aon Benfield said in a statement

Kizuna Re II Ltd., launched in January, was the second catastrophe bond transaction sponsored by Tokio Marine & Nichido Fire using an indemnity trigger after the issuance of Kizuna Re Ltd. in 2011, which was also arranged by Aon Benfield Securities.

“After the proven success of Kizuna Re Ltd. in 2011, we are pleased to have successfully placed Kizuna Re II Ltd. on terms attractive to Tokio Marine & Nichido Fire Insurance,” said Paul Schultz, CEO of Aon Benfield Securities, said in the statement. “Investors were very supportive of the transaction, demonstrating both the high quality of the sponsor as well as the attractiveness of Japan earthquake risk as a diversifying peril in the ILS market.”