Zurich Insurance Raises $270 Million for Earthquake Protection
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Zurich Insurance Group AG obtained $270 million of protection with bonds designed to guard Switzerland’s biggest insurer from losses linked to earthquakes in North America.
The firm bought protection from Lakeside Re III Ltd., a Bermuda-based special purpose reinsurance company that issued the so-called catastrophe bonds due in three years in an oversubscribed offering, Zurich said today in a statement on its website. The securities pay investors 800 basis points more than the rate on quarterly Treasury bills, according to data compiled by Bloomberg.