AIG Obtains $400 Million of Reinsurance Coverage
Fully Collateralized through Catastrophe Bond Issuance by Compass Re Ltd.
NEW YORK -- January 9, 2013
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
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
Compass Re Ltd. is a special purpose insurer, incorporated under the laws of
Bermuda, which has established a program structure enabling potential future
catastrophe bond issuances.
AIG is the world’s largest insurance organization, serving more than 88
million customers in over 130 countries and jurisdictions around the world.
AIG businesses are market leaders in property casualty insurance, life
insurance and retirement services, mortgage insurance, and aircraft leasing.
Additional information about AIG can be found at www.aig.com | YouTube:
www.youtube.com/aig |Twitter: @AIG_LatestNews| LinkedIn:
AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com. All
products and services are written or provided by subsidiaries or affiliates of
American International Group, Inc. Products or services may not be available
in all jurisdictions, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent third
parties. Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate in state
guaranty funds, and insureds are therefore not protected by such funds.
Matt Gallagher, 212-458-3247
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