AML: Amlin Plc: Completion of Cat Bond UK Regulatory Announcement LONDON 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.” ENDS Enquiries: 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. Contact: Amlin Plc
AML: Amlin Plc: Completion of Cat Bond
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