AML: Amlin Plc: Completion of Cat Bond
UK Regulatory Announcement
Amlin transfers U.S. and Canadian earthquake risk to the capital markets
Amlin announces that it has acquired coverage for U.S and Canadian earthquake
perils of up to USD 75m from a Bermudian special purpose insurer, Tramline Re
II Limited, which in turn is placing a catastrophe bond for this amount into
the capital markets.
This transaction provides the Amlin Group with fully collateralised protection
over a 4 year period from 1 July 2013 against claims arising from a single
earthquake event in all US and Canadian states and provinces. The coverage
attaches at USD 325m.
This cover is in addition to the protection that Amlin purchases through the
traditional reinsurance marketplace and provides significant risk transfer for
a key exposure of the Group. The cover provided by the bond is based on market
share factors applied to market industry losses as reported by PCS.
As part of the transaction Amlin AG has entered into reinsurance agreement
with Tramline Re II Limited which will issue to investors USD 75m of four year
principal-at-risk variable rate notes. The proceeds of these notes will
comprise the collateral for Tramline Re II Limited’s obligations to Amlin AG
pursuant to the reinsurance agreement. Amlin’s Lloyd’s Syndicate 2001 will
also benefit from the cover provided by the bond through a reinsurance
arrangement with Amlin AG.
The transaction has been structured and arranged by Aon Benfield with risk
modelling developed by AIR Worldwide.
Charles Philipps, chief executive of Amlin plc, said: “The additional
protection provided by this bond will complement the cover provided by our
traditional reinsurance programme and Amlin’s existing three year catastrophe
bond which incepted on 1 January 2012. We continue to see attractive
opportunities emerging from the evolution of the market for catastrophe risk
transfer, which Amlin is well placed to exploit.”
Charles Philipps, CEO, Amlin plc 020 7746 1000
Richard Hextall, Finance & Operations Director, Amlin plc 020 7746 1000
Julianne Jessup, Head of Investor Relations, Amlin plc 020 7746 1961
Ed Berry, Senior Director, FTI Consulting 020 7269 7297
Notes to Editors:
Amlin plc is a leading independent insurance group operating in the Lloyd’s
market through Amlin London and additionally in the UK, Continental European
and Bermudian markets. We specialise in providing insurance cover to
commercial enterprises across a broad range of risks including aviation,
marine and international property & casualty. We also provide reinsurance
protection to other insurance companies around the world.
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