First non-US risk cat bond comes in at half expected size
Munich Re priced a €50m catastrophe bond on Tuesday, the first this year to reference a non-US risk, but at just half the size initially expected, Rueters reported.
The bond, sold via Irish-incorporated special-purpose vehicle Ianus Capital and lead-managed by JP Morgan, matures on June 9, 2012. Rated B2 by Moody's Investors Service, the bond was priced to yield 9% over three-month Euribor.
The transaction, will protect Munich Re against losses from European windstorms and Turkish earthquakes.
The firm provides reinsurance for the Turkish Catastrophe Reinsurance Pool (TCIP), a mandatory property insurance programme established in 2000.
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