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NEWARK, Calif. - October 14, 2015 RMS, the world’s leading catastrophe risk management firm, today announced it provided the risk analysis for the PennUnion Re Ltd Series 2015-1 Notes. The parametric bond transfers $275 million of catastrophic hurricane and earthquake risk to the capital markets, providing Amtrak with financial protection for its assets in the Northeast Corridor.

In addition to the risk analysis, RMS also provided consulting support to help Amtrak strengthen its risk transfer strategy. Combined, the bond and preparatory consulting work by RMS equips Amtrak to define the probability and severity of potential catastrophic scenarios, assess the risk that it currently holds, and evaluate the cost benefit of disaster risk mitigation policies.

“RMS is delighted to have helped develop PennUnion Re Ltd, protecting Amtrak-owned infrastructure along one of the most important railroads in the northeast region,” said Ben Brookes, vice president of capital markets at RMS. “The bond’s robust trigger, based on measured hazard values, will help Amtrak receive a quick settlement, enabling the agency to recover quickly following a hurricane or earthquake.”

PennUnion Re enables Amtrak to cover the cost of disasters by tapping new risk financing outside the traditional reinsurance markets.

“This is the first time Amtrak has used the capital markets to broaden our base of insurance coverage,” said Gerald Sokol, Jr., Amtrak executive vice president and chief financial officer. “The catastrophe bond market provides us with a means to diversify our sources of insurance in a cost effective manner.”

“PennUnion is another ground-breaking catastrophe bond transaction predicated on mature, metric-based understanding of current and future risk that RMS has helped develop for a transport agency,” said Brookes.

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About RMS

Risk Management Solutions, Inc. (RMS) helps insurers, financial markets, corporations, and public agencies evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics.

RMS leads the catastrophe risk industry that we helped to pioneer by marrying data and advanced model science with leading-edge technology. Leaders across multiple industries can address the risks of tomorrow through RMS Risk Intelligence™, our open, real-time exposure and risk management platform, enabling them to tap into RMS HD models, rich data layers, intuitive applications and APIs that simply integrate into existing enterprise systems.

RMS is a trusted solutions partner enabling effective risk management for better business decision making across underwriting, risk selection, mitigation, and portfolio management.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

Media Contacts

Matthew Longbottom

PR Lead, EU and APAC
+44 20 7444 7706 prteam@rms.com

Devonne Cusi

PR Lead, Americas
+1 551 226 1604 prteam@rms.com
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