Zurich – Zurich Insurance Group (Zurich) today announced that it has obtained, through its subsidiaries Zurich American Insurance Company and Zurich Insurance Company Ltd, a 3-year USD 270 million catastrophe excess of loss reinsurance protection from Lakeside Re III Ltd. (Lakeside III) to cover the risk of earthquakes in specific territories in North America. The cover offers protection on an annual aggregate basis. This reinsurance transaction is a replacement of the expiring 2009 Lakeside Re II Ltd. transaction.
Zurich has entered into a reinsurance transaction with Lakeside III, a special purpose reinsurance company domiciled in Bermuda, to receive up to USD 270 million in payment of losses in the event of one or more North America earthquakes during the 3-year period. Lakeside III, in turn, has issued to the capital markets principal at-risk variable rate notes linked to this risk. The catastrophe bond has a floating coupon consisting of a fixed 8% plus a variable investment yield received by Lakeside III on the underlying assets. The offering was oversubscribed.
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Zurich Insurance Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational corporations. Zurich employs about 60,000 people serving customers in more than 170 countries. The Group, formerly known as Zurich Financial Services Group, is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt program which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.
Disclaimer & Cautionary Statement
The Lakeside Re III Ltd. notes were sold in a private placement in compliance with Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. All of the notes referred to herein have been sold and this press release appears as a matter of record only.
This Press Release Does Not Constitute An Offer To Sell Or A Solicitation Of An Offer To Buy The Notes Or Any Other Securities.
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