24 May 2016 News

Munich Re completes $190m wind cat bond

Munich Re has placed a $190 million cat bond to protect it against hurricanes affecting the US and windstorms affecting select European countries.

The bond, the second largest of this type by Munich Re, was launched using a newly formed designated activity company called Queen Street XII Re domiciled in Ireland.

The notes provide four seasons of per occurrence protection from hurricanes affecting the US and windstorms affecting select European countries. The deal is triggered based on a weighted industry loss index using industry insured losses as reported by Property Claim Services for the US and PERILS for Europe.

The notes utilised a putable note issued by the International Bank of Reconstruction and Development (IBRD) as the initial permitted investment, which is the first time such permitted investment has been utilised in Munich Re’s Queen Street series.
GC Securities served as sole bookrunner on Queen Street XII Re.

David Priebe, vice chairman of Guy Carpenter and head of GC Securities, said: “Queen Street XII Re further demonstrates Guy Carpenter and GC Securities’ commitment to providing alternative capital retrocession solutions to reinsurers.

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