Market Overview

AIG Announces $400M of Resinsurance Coverage

Related AIG
Unum Group Says Josh Nelson To Join As CFO Of Its Colonial Life Unit
The Best And Worst Stocks Of The 2008 Crash: What We Learned
What Will The Fed Do When Push Comes To Shove? (Seeking Alpha)

AIG (NYSE: AIG) today announced that it has entered into a reinsurance transaction with Compass Re Ltd., which will provide $400 million of peak-zone protection against U.S. hurricanes and earthquakes. To fund its potential obligations to AIG, Compass Re Ltd. issued a $400 million catastrophe bond in a single tranche.

The transaction closed on December 27, 2012 and provides AIG with fully collateralized coverage against the losses described above on a per-occurrence basis (under a reinsurance agreement related to the notes) through December 2014 using an index trigger with state-specific payment factors. With this transaction, AIG has sponsored $1.85 billion in catastrophe bonds over the past three years, enhancing its role as a market leader in the catastrophe bond marketplace.

Posted-In: News


Related Articles (AIG)

View Comments and Join the Discussion!