AIG Obtains $125 Million of Five-Year Indemnity Reinsurance Coverage for
Diversified Commercial and Consumer Property Portfolios
Fully Collateralized through Catastrophe Bond Issuance by Tradewynd Re Ltd.
NEW YORK -- July 10, 2013
AIG today announced that it has entered into a five-year reinsurance
transaction with Tradewynd Re Ltd., which will provide $125 million of
indemnity reinsurance protection against U.S., Caribbean and Gulf of Mexico
named storms, and U.S. and Canadian earthquakes. A diversified portfolio of
risks is reinsured under the transaction. Commercial lines coverages include
commercial property, energy and engineered risks, marine and aviation.
Consumer lines coverages include high net worth residential, auto, yacht and
fine art. To fund its potential obligations to AIG, Tradewynd Re Ltd. issued a
five-year, $125 million single tranche catastrophe bond.
The transaction closed on July 9, 2013 and provides AIG with fully
collateralized coverage against losses from the events described above on a
per-occurrence basis (under a reinsurance agreement related to the notes)
through June 2018. The transaction also includes a feature that allows AIG to
shift the covered layer up or down within pre-determined limits.
AIG is a leader in the insurance-linked securities market, sponsoring $2
billion of cat bonds in the last three years. With this transaction, AIG is
pleased to further advance capital market participation in insurance risks.
Tradewynd Re Ltd., a special purpose insurer incorporated under the laws of
Bermuda, has established a program structure enabling potential future
catastrophe bond issuances.
American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries. AIG companies serve
commercial, institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In addition,
AIG companies are leading providers of life insurance and retirement services
in the United States. AIG common stock is listed on the New York Stock
Exchange and the Tokyo Stock Exchange.
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 countries, 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 (Media), 212-458-3247
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