RMS Announces New Munich Re and Tokio Marine Transaction; RMS Paradex Index Now Over $250M Mark

Newark, Calif – April 23, 2009 - Risk Management Solutions (RMS) today announced that Munich Re and Tokio Marine Nichido Fire closed a private catastrophe swap based on its industry loss index, Paradex-Europe Windstorm. This transaction now brings the total notional amount of risk transferred using Paradex-Europe Windstorm to over $250 million.

The index uses wind speed measurements in specific locations to calculate insured loss estimates based on RMS industry exposure data, and allows transactions to settle quickly and objectively. “We are excited that these two respected reinsurers have selected Paradex as the best solution to transfer Europe Windstorm risk,” said Peter Nakada, Managing Director at RMS. “This marks an important development in the way catastrophe swap transactions are structured, and underscores how the index can be applied across the insurance-linked securities market.” In addition to supporting the catastrophe derivatives market, RMS believes that Paradex-Europe Windstorm - which uniquely calculates insured losses at a detailed, local level and can be aggregated by region, country, or Europe-wide to suit the underlying portfolio - will provide a common 'currency' for the European industry loss warranty market.

 "For some time, industry loss warranty traders have been seeking an objective third-party index for settling transactions. Paradex-Europe Windstorm meets this need," said Nakada. “The Paradex index represents an important step in developing a more liquid market for Europe Windstorm risk,” added Hans Thoenes from Munich Re’s Risk Trading Unit.

About RMS
Risk Management Solutions is the world’s leading provider of products and services for catastrophe risk management. More than 400 leading insurers, reinsurers, trading companies, and other financial institutions rely on RMS models to quantify, manage, and transfer risk. Founded at Stanford University in 1988, RMS serves clients today from offices in the U.S., Bermuda, the U.K., France, Switzerland, India, China, and Japan. For more information, visit our website at www.rms.com.