Amlin acquires $200M reinsurance coverage for U.S., European storms
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Amlin P.L.C. has acquired reinsurance coverage of up to $200 million for U.S. named storm, U.S. earthquake and European windstorm perils via a Bermuda-based special purpose insurer, Tramline Re II Ltd., Amlin announced Monday.
London-based Amlin said that the special purpose vehicle would, in turn, place a $200 million catastrophe bond.
The deal gives insurer and reinsurer Amlin fully collateralized protection for a four-year period starting Jan. 1, it said, and the coverage attaches on an index loss basis equivalent to $500 million.
Amlin, which operates insurance companies in Europe and Bermuda and at Lloyd’s of London, said the deal was in addition to coverage it purchases in the traditional reinsurance markets and replaces a previous Tramline Re coverage which was placed in 2010 and expires on Dec. 31.
“The protection provided by this bond will complement the cover provided by our traditional reinsurance program and Amlin’s existing four-year earthquake catastrophe bond which incepted on July 1, 2013,” Charles Philipps, CEO of Amlin, said in a statement.
The transaction was structured by Aon Benfield Securities, a unit of Aon P.L.C., and risk modelling was developed by AIR Worldwide Corp.
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