ILS transactions could be exposed to Mexico quake, World Bank-backed cat bond likely to be triggered

Swiss insurance-linked securities investment manager Twelve Capital A.G. said that private ILS transactions such as collateralized reinsurance arrangements could suffer losses due to exposure to the 8.1-magnitude earthquake that struck Mexico on Sep. 8, Artemis.bm reports. The quake is also likely to trigger The World Bank Group-backed catastrophe bond with a payout of anywhere between 50% to 100%. Joaquim Levy, chief financial officer of the World Bank, said that the bank believes the cat bond could be at least partially triggered.

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