Amlin plc Amlin transfers US named storm, US earthquake and European windstorm risks to the capital markets
December 22 2014 - 10:19AM
UK Regulatory
TIDMAML
AMLIN PLC
PRESS RELEASE
For immediate release
22 December 2014
Amlin transfers US named storm, US earthquake and European
windstorm risks to the capital markets
Amlin announces that it has acquired coverage for US named
storm, US earthquake and European windstorm perils of up to USD
200m from a Bermudian special purpose insurer, Tramline Re II
Limited, which in turn is placing a catastrophe bond for this
amount into the capital markets.
This transaction provides the Amlin Group with fully
collateralised protection over a four year period from 1 January
2015. The coverage attaches on an index loss basis equivalent to
USD 500m. It replaces the Tramline Re protection placed in 2010
which expires with effect from 31 December 2014.
This cover is in addition to the protection that Amlin purchases
through the traditional reinsurance marketplace and provides
significant risk transfer for key exposures of the Group. The cover
provided by the bond is based on market share factors applied to
market industry losses as reported by PCS and PERILS for
Europe.
As part of the transaction Amlin AG has entered into a
reinsurance agreement with Tramline Re II Limited which will issue
to investors USD 200m of four year principal-at-risk variable rate
notes. The proceeds of these notes will comprise the collateral for
Tramline Re II Limited's obligations to Amlin AG pursuant to the
reinsurance agreement. Amlin's Lloyd's Syndicate 2001 will also
benefit from the cover provided by the bond through a reinsurance
arrangement with Amlin AG.
The transaction has been structured and arranged by Aon Benfield
Securities with risk modelling developed by AIR Worldwide.
Charles Philipps, Chief Executive of Amlin plc, said: "The
protection provided by this bond will complement the cover provided
by our traditional reinsurance programme and Amlin's existing four
year earthquake catastrophe bond which incepted on 1 July
2013."
ENDS
Enquiries:
Charles Philipps, Chief Executive, Amlin plc 020 7746 1000
Richard Hextall, Chief Finance & 020 7746 1000
Operations Officer, Amlin plc
Julianne Jessup, Head of Investor Relations, Amlin plc 020 7746 1961
Ed Berry, FTI Consulting 020 3727 1046
Notes to Editors:
Amlin plc is a FTSE 250 listed independent global insurer with
operations in the Reinsurance, Marine & Aviation and Property
& Casualty markets. It specialises in providing insurance cover
for a wide range of risks to commercial enterprises and reinsurance
protection to other insurers around the world.
This information is provided by Business Wire
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