Aon Corp., based in Chicago, announced that its investment banking group, Aon Capital Markets, completed the private placement of $190 million of principal at- risk variable rate notes for Munich Re. The placement provides Munich Re with collateralized catastrophe protection for California earthquake property exposures ceded by Zurich American Insurance Co. and its affiliates. Aon Capital Markets was the initial purchaser for the Rule144A transaction.
“The embedded industry loss warranty gave comfort to investors that have not chosen to actively participate in indemnity-based structures,” said Paul Schultz, president of Aon Capital Markets.
The notes were issued by Lakeside Re Ltd., an exempted company licensed as a restricted Class B insurer in the Cayman Islands established for the transaction. Risk Management Solutions Inc. provided the risk modeling and analysis for the transaction. The notes were priced at LIBOR plus 6.50 percent with a maturity of three years and rated BB+ by Standard & Poor’s.
Source: Aon
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
