Skip to content
Subscriber Only

AIG’s Chartis Sells $450 Million in Catastrophe Bonds

American International Group Inc.’s property-casualty unit is doubling the protection it receives through catastrophe bonds with the issuance of $450 million in securities, according to data compiled by Bloomberg.

One portion provides $325 million of coverage and pays 7.25 percentage points more than three-month Treasury bills, according to the data. The other slice, at $125 million, yields 6 percentage points above the benchmark. Both mature in 2014 and protect against U.S. hurricanes and earthquakes for New York-based AIG’s Chartis division.