RMS Conducts Risk Analysis for VenTerra Re Ltd. Catastrophe Bond
QBE chose RMS for the first bond to contain risk in Australia on an indemnity basis
NEWARK, Calif. -
January 07, 2014 -
RMS, the world's leading catastrophe modeling firm, today announced that the company conducted the risk analysis for a new catastrophe bond issued by VenTerra Re Ltd, a special purpose vehicle for investors. The bond, transfers $250 million of multi-peril risk to the capital markets and is the first time QBE insurers are participating in such a transaction. The bond is also the first issuance to provide cover to the region of Australia on an indemnity basis. RMS was selected due to a combination of its reliable modeling of industrial and commercial risks using its unique Industrial Facilities Model, calibrated with billions of dollars of global claims data, and its industry leading risk models for Australia.
To conduct the risk analysis, RMS used its North America Earthquake Model, and for the first time for this type of deal its Australia Earthquake model and Australia Cyclone model.
"We are proud to have partnered with QBE on this innovative and highly successful transaction," said Peter Nakada, managing director, capital markets, RMS. The strong support from investors demonstrates the market's confidence in QBE's cat management and underwriting, as well as in RMS' global modeling capabilities across all risk types, including commercial and industrial risks.
"We are delighted that the RMS models and QBE's use of RMS models for cat management contributed to the speed and efficiency of this transaction.
RMS models and software help financial institutions and public agencies evaluate and manage catastrophe risks throughout the world, promoting resilient societies and a sustainable global economy.