World Bank Group Issues Its Biggest-Ever Catastrophe Bond

The World Bank Group issued its largest catastrophe bond, providing Mexico with financial protection of as much as $360 million against losses from tropical cyclones and earthquakes.

Mexico is among the countries most vulnerable to natural disasters, the bank said in a statement. Nearly a third of its population lives in areas exposed to hurricanes, storms, floods, earthquakes, and volcanic eruptions. The coverage is the equivalent of 71 percent of the country’s economic output considered at risk from two or more natural hazards.