RMS Performs Risk Analysis for U.S. Hurricane Catastrophe Bond

Newark, CA – May 6, 2009 – Risk Management Solutions (RMS) has completed the expert modeling analysis in connection with the securities offering undertaken by Ibis Re Ltd., a special purpose reinsurance company domiciled in the Cayman Islands. The securities offering is intended to finance a separate reinsurance transaction providing $150 million of collateralized coverage against U.S. hurricane over three years for the New York-based insurer Assurant, Inc.

The trigger for the reinsurance arrangement is based on an index that references state-by-state personal lines industry losses for U.S. hurricane as reported by Property Claims Services. Within Florida, the index is further adjusted to account for the location of hurricane landfall.

“In this market, simplicity and transparency are more than ever key requirements for investors,” commented Peter Nakada, managing director of RiskMarkets, RMS’ dedicated insurance-linked securities (ILS) team. “The use of landfall location in this deal illustrates how basis risk can be managed without a cost to transparency.”

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., Europe, and Japan. For more information, visit our web site at www.rms.com.