(The following is a reformatted version of a press release
issued by Zurich Insurance Group and received via electronic
mail. The release was confirmed by the sender.)
Zurich obtains USD 270 million of North America earthquake
protection from Lakeside Re III Ltd.
Zurich, January 3, 2013 - 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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