(The following press release from the Metropolitan Transportation 
Authority was received by e-mail and was reformatted. The sender verified the 
Wednesday, July 31, 2013 
For Release
MTA Secures $200 Million of Insurance Protection
For Future Sandy-Like Storms 
The Metropolitan Transportation Authority (MTA) today announced that it has 
secured $200 million of insurance protection that will help pay for future 
repairs for damage to its infrastructure in the event of a storm featuring 
destructive storm surges similar to those experienced during Superstorm Sandy. 
The insurance protection has been funded through the offering of "catastrophe 
bonds" by MetroCat Re Ltd., a special purpose insurer. 
This is the first time that the MTA has accessed the capital markets to manage 
its property damage risks, and it is the first catastrophe bond ever issued to 
protect solely against storm surge. The MTA's premium cost is well below quotes 
that MTA received this spring for traditional property coverage. 
"In the aftermath of Superstorm Sandy, the traditional avenues we use for 
insurance and reinsurance contracted dramatically, making it exceedingly 
difficult for the MTA to obtain insurance," said MTA Chairman and CEO Thomas F. 
Prendergast. "But as a result of this savvy and novel reinsurance arrangement, 
we are now in a stronger position should our area, God forbid, face another 
large-scale storm-surge event within the next three years." 
The transaction provides protection in the unlikely event that the water level 
reaches designated heights in the New York City Metropolitan Region during any 
hurricane, tropical cyclone or tropical storm through August 5, 2016. 
"This terrific outcome was the result of the creative thinking and hard work of 
MTA's finance, strategic initiatives and insurance staff as well as the 
willingness of our Board to explore new risk transfer alternatives," 
Prendergast continued. "It will substantially increase our coverage for 
property damage from storm surge for three years at a favorable price. This 
transaction also strengthens our position with regard to future interactions 
with the traditional reinsurance market. We anticipate that this deal 
represents the start of a long-term alternative reinsurance option that 
diversifies MTA's risk management strategy." 
Assisting MTA on this transaction were:
·         The First Mutual Transportation Assurance Company (FMTAC), the MTA's 
in-house insurer, which entered into a reinsurance contract with MetroCat Re to 
provide this storm surge protection.
·         Risk Management Solutions, Inc., a risk modeling firm.
·         Raymond James and Associates, Inc., financial advisor to FMTAC on 
this transaction.
·         GC Securities, a division of MMC Securities Corp and a member of 
Marsh and McLennan Companies, and Goldman, Sachs and Co., companies with 
substantial experience as advisors and/or underwriters of reinsurance through 
capital markets-based programs. 
Contact:    MTA Press Office 
(212) 878-7440 
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