RMS Performs Risk Analysis For Parametric Securitization Covering Japan Typhoon Risk

$200 Million Deal Covers Japan Typhoon Losses
 

Newark, Calif. – August 17, 2006 – Risk Management Solutions (RMS), the world’s leading provider of products and services for the management of catastrophe risk, performed the risk analysis for a parametric securitization of typhoon risk in Japan. Issued by Fhu-Jin Ltd., a Cayman Islands SPV, the securities provide $200 million of five-year, collateralized cover for Tokio Marine & Nichido Fire Insurance Co., Ltd.
Fhu-Jin Ltd is the first parametric securitization of Japan typhoon risk to use 10-minute mean wind speeds, observed over 900 stations of the Automated Meteorological Data Acquisition System (AMeDAS) network in Japan, and a unique, new method of calculating peak gust wind speed.

Fhu-Jin Ltd was assigned a “BB+” senior secured debt rating by Standard & Poor’s, and priced competitively at a time when diversifying peril-risk issues are sought more than ever by investors.

“We are pleased that we were able to help investors get the parametric structure that they favor, while providing the sponsor with the tailored protection they needed,” said Peter Nakada, managing director of RMS consulting. “Our securitization work at RMS is consistently demonstrating our ability to provide investors with a means to diversify their catastrophe investments.”