AlphaCat crafts first cat bond to cover Latin America risks
In what represents an important step forward for the insurance-linked securities (ILS) markets, AlphaCat Managers, the ILS investment adviser that is a subsidiary of Validus Holdings, has completed the first catastrophe bond to cover risks from Latin America.
The $5 million private deal will transfer risks generated by Brazilian reinsurer Terra Brasis Resseguros into the capital markets on an indemnity basis.
The bond, calkled Alpha Terra Validus I, was issued through a segregated account of White Rock Insurance (SAC), which is managed by Aon Insurance Managers (Bermuda). The notes were admitted to the Bermuda Stock Exchange as of February 6, 2017 and will remain listed there until maturity.
Lixin Zeng, the CEO of AlphaCat, said: “We are pleased to have partnered with Terra Brasis Re in bringing this innovative transaction to market and look forward to working together in the future.”
Rodrigo Botti, the Director of Terra Brasis Re, added: “The partnership with AlphaCat will significantly contribute to the development of the Latin American insurance and reinsurance markets, as it brings capital markets based solutions to the region’s exposures.”
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze