RMS Conducts Risk Analysis for First Indemnity Bond Sponsored By Generali
Generali uses RMS modeling to bring Europe windstorm risk to the capital markets on an indemnity basis in first time issuance
NEWARK, Calif. -
April 29, 2014 -
RMS, the world’s leading catastrophe management firm, today announced that it has conducted the risk analysis for a new catastrophe bond issued by Lion I Re Ltd. The bond is the first to be sponsored by Assicurazioni Generali S.p.A. (Generali) and is the first indemnity Europe windstorm catastrophe bond to be issued using an independent modeling agent. The transaction, which transfers €190 million of catastrophic Europe windstorm risk to the capital markets, was modeled using the RMS 2011 Europe Windstorm Model.
“We are proud to have partnered with Generali on this highly successful and important transaction” said Peter Nakada, managing director, capital markets, RMS. “The strong support from investors demonstrates the market’s appetite for diversifying perils such as Europe windstorm. Successful execution with an indemnity trigger also shows growing comfort with this type of risk. Overall this is a strong endorsement of both Generali’s catastrophe management and RMS modeling capabilities.”
Lion I Re Ltd transfers €190 million of Generali’s exposure to losses resulting from Europe windstorms, as named by the Freie Universität Berlin, across 16 European countries. High levels of demand for the notes allowed the transaction to be upsized from €150 million to €190 million and to achieve final pricing at 225 basis points.
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.