AIG Obtains $400 Million of One-Year and Three-Year Indemnity Reinsurance
Coverage for Diversified Commercial and Consumer Property Portfolios
Fully Collateralized through Catastrophe Bond Issuance by Tradewynd Re Ltd.
NEW YORK -- December 19, 2013
American International Group (AIG) today announced that it has entered into
multiple reinsurance placements with Tradewynd Re Ltd., which will provide
$400 million of indemnity reinsurance protection against U.S., Caribbean and
Gulf of Mexico named storms, and U.S. and Canadian earthquakes.
Similar to Tradewynd Re Ltd.'s July 2013 catastrophe bond issuance, this
arrangement includes a diversified portfolio of commercial and consumer risks.
To fund its potential obligations to AIG, Tradewynd Re Ltd. issued three
tranches of notes, one with a one-year term and two with three-year terms. Due
to strong investor demand and favorable pricing, AIG increased the offering to
$400 million from the initial $100 million.
The transaction closed December 18, 2013 and provides AIG with fully
collateralized coverage against losses from the events described above on a
per-occurrence basis (under three reinsurance agreements related to the
AIG is a leader in the insurance-linked securities market, sponsoring over
$500 million of indemnity cat bonds in 2013 and $2.375 billion in total since
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 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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