BNET Business Dictionary
Business Definition for: Catastrophe Bond
- a bond with a very high interest rate which may be worth less or give a lower rate of interest if a disaster occurs, whether it be natural or otherwise
Additional Resources
- FM Global Utilizes a US$300 Million Catastrophe Bond
- JOHNSTON, R.I. -- Commercial and industrial property insurer FM Global has announced the private placement of a US$300 million catastrophe bond to protect against the consequences of unusual earthquake activity in the Pacific Northwest region of the United States and Canada. The transaction is the first of its kind for...
- Research articles 2005-06-07
- Aon Capital Markets Underwrites Multi-Peril Catastrophe Bond
- CHICAGO -- Aon Corporation (NYSE:AOC) today announces that its Aon Capital Markets group has underwritten a multi-peril catastrophe bond for Helix 04 Limited. The private placement of $100 million of floating rate notes provides Converium Group with fully collateralized second and subsequent event catastrophe protection for North Atlantic hurricane, U.S....
- Research articles 2004-06-21
- Travelers Announces Establishment of Catastrophe Bond Program and Successful Completion of $500 Million Offering of Catastrophe Bonds
- SAINT PAUL, Minn. -- The Travelers Companies, Inc. (NYSE:TRV) today announced the establishment of a multi-year catastrophe bond program. The program was established by Travelers to provide reinsurance protection for its insurance subsidiaries for losses resulting from hurricanes and certain other catastrophes in the United States. Travelers may obtain reinsurance...
- Research articles 2007-05-08
- Fitch Expects to Rate Atlantic & Western Re Limited Catastrophe Bond
- CHICAGO -- Fitch Ratings has issued a presale report on the Atlantic & Western Re Limited (A&W) catastrophe bond, discussing the rating analysis behind Fitch's expected 'BB' rating on the $100 million class A notes and 'B' rating on the $200 million class B notes. The presale report is...
- Research articles 2005-10-24
- The Growing Appetite for Catastrophe Risk: The Catastrophe Bond Market at Year-End 2004
- This report focuses exclusively on natural catastrophe bonds and therefore does not discuss other insurance securitization transactions, such as instruments that secure life mortality risks, the risk of trade credit insurance policies or weather derivatives. Finally, while the report believes that all industry participants will find this report valuable, the...
- White papers 2005-03-01
- Using Catastrophe Bonds to Provide Unique Insurance Solutions for Difficult Risk Exposures
- Fortunately for the beleaguered risk manager, the ART menu is an ever-expanding one. As another alternative to traditional reinsurance purchasing the corporate entity, whether it is an international corporation, an offshore captive insurance company, or a domestic US property-casualty insurer must look to explore the option presented by the catastrophe...
- White papers 2004-07-09
- Fitch Publishes Updated Global Catastrophe Bond Rating Criteria
- CHICAGO -- Fitch Ratings has updated its global ratings criteria for catastrophe bonds. Catastrophe bonds are structured financings whose payments to investors are exposed to the risk of catastrophic events such as hurricanes, earthquakes, wind storms and wild fires. Catastrophe bonds are one of many types of insurance-linked securities ILS....
- Research articles 2008-03-11
- Aon storms markets with typhoon cat bond. (Aon Capital Markets Inc)
- CHICAGO - A recent catastrophe bond deal is significant not only as the first to securitize Japanese windstorm risks, but also because it was engineered by a new player in a realm that previously has been dominated by investment banks. Yasuda Fire &amCHICAGO - A recent...
- Research articles 1998-06-29
- Aon storms markets with typhoon cat bond
- RODD ZOLKOS CHICAGO - A recent catastrophe bond deal is significant not only as the first to securitize Japanese windstorm risks, but also because it was engineered by a new player in a realm that previously has been dominated by investment banks. YaRODD ZOLKOS ...
- Research articles 1998-06-29
- Aon loses cat-bond team to rival
- Aon Corp.'s Chicago catastrophe-bond team resigned earlier this month to jump en masse to competitor Cochran, Caronia & Co., where they're establishing a similar unit that will work with the firm's insurance-company clients.Aon Corp.'s Chicago catastrophe-bond team resigned earlier this month to jump en masse to competitor Cochran, Caronia &...
- Research articles 2002-01-11
- Hiscox buys cat bond for U.S. quake risks.(Brief Article)
- LONDON-Hiscox Syndicates Ltd. has purchased a catastrophe bond to protect its Lloyd's of London syndicate 33 against earthquake risks in the United States. The $33 million of catastrophe risk-linked notes provide syndicate 33 with protection against earthquakes in California and the New Madrid ...
- Research articles 2002-04-22
- Catastrophe Bond Investment Venture Makes Initial Investment
- EDISON, N.J.--BUSINESS WIRE--June 12, 1997--PXRE Corporation (NYSE: PXT) today announced that its recently formed joint venture, Cat Bond Investors, has completed its first investment in catastrophe bonds. This first investment is in hurricane bonds issued by Residential Reinsurance Limited, a special purpose reinsurance company for ceding insurer USAA. ...
- Research articles 1997-06-12
- Montpelier Re Holdings Ltd. Enters into $90mm Collateralized Catastrophe Agreements Through Catastrophe Bond Transaction
- HAMILTON, Bermuda -- Montpelier Re Holdings Ltd. (NYSE: MRH) today announced that it has entered into two transactions providing $90 million in catastrophe protection with Champlain Limited, a Cayman Island company. E[acute accent]The coverage is based on modeled market loss triggers. Upon the occurrence of an earthquake or hurricane in...
- Research articles 2005-12-22
- Pxre And Phoenix To Form Catastrophe Bond Investment Venture
- EDISON, N.J.--BUSINESS WIRE--May 22, 1997--PXRE Corporation (NYSE:PXT) and Phoenix Home Life Mutual Insurance Company today announced the formation of a joint venture, Cat Bond Investors, which will specialize in investing in catastrophe bonds with returns that are determined by insured losses from catastrophic events.
- Research articles 1997-05-22
- EQECAT, Inc. Provides Risk Analysis for AGF Catastrophe Bond
- Business Editors/High-Tech Writers OAKLAND, Calif.--BUSINESS WIRE--Nov. 29, 2000 EQECAT, Inc., a subsidiary of ABS.EQE, provided the risk analysis to support AGF Group's $129 million reinsurance securitization through a bond issued by Mediterranean Re, the first time a bond has been issued for windstorms in France and earthquakes in...
- Research articles 2000-11-29
- Aon underwrites catastrophe bond
- Aon Corp. has announced the private placement of $300 million of principal at-risk variable rate notes. The placement provides FM Global with fully collateralized catastrophe protection for Pacific Northwest earthquake exposures.
- Research articles 2006-10-01
- Risk management takes sophisticated turn.
- A British oil giant self-funds its losses on a pay-as-you-go basis and at one point considers a loss-financing method that could reward investors in a catastrophe bond issue with an equity stake in the company. Reinsurers, insurers and brokers labor tA British oil giant self-funds its...
- Research articles 1997-02-17
- Florida Hurricane fund taps Lehman for bond expertise. (Florida Hurricane Catastrophe Fund, Lehman Brothers Holdings Inc.)
- As the year heads toward a close, funding initiatives tapping investor capital for state-run catastrophe pools are in the works, in addition to the earthquake bonds being offered for the California Earthquake Authority see story above. While th As the year heads...
- Research articles 1996-11-18
- Congress looks into cat bond benefits. (Alternative Markets).(catastrophe bonds )
- The U.S. House Financial Services Committee is looking for ways to facilitate the creation of new capacity in the insurance marketplace, possibly by removing barriers to catastrophe bonds, according to a senior committee member. Rep. Sue Kelly, R- The U.S. House Financial Services...
- Research articles 2002-11-04
- PXRE Group uses cat bond for windstorm, quake risks.(News)
- Byline: JUDY GREENWALD HAMILTON, Bermuda-PXRE Group Ltd. has obtained $300 million worth of catastrophe reinsurance coverage through a cat bond issued on its behalf by a special purpose vehicle. The cat bond issued by Cayman Island-based Atlantic & Western Re Ltd....
- Research articles 2005-11-14
