XL Catlin units wrap $300 million in catastrophe bond coverage

Some $300 million in catastrophe bond coverage covering perils in the United States, Canada and Europe has been completed for XL Insurance (Bermuda) Ltd. and certain affiliates, GC Securities said Thursday.

The cat bonds, placed through Galileo Re Ltd., cover named U.S. storms, U.S. and Canadian earthquakes, and windstorms in certain European countries using a weighted industry loss index, GC Securities, a unit of MMC Securities L.L.C., said in a statement.

“Alternative capital solutions can be beneficial as the industry goes through organizational changes and consolidation in reaction to the current market environment and impact of competing new capital sources” to assume risk in a cost-effective way, Nick Frankland, CEO of Guy Carpenter's Europe, Middle East and Africa operations, said in the statement.

The cat bonds cover the perils through Jan. 8, 2019, GC Securities said.