Aquila To Enter Australian/New Zealand Weather Derivative Market

August 20, 2001

Aquila, Inc., the Kansas City-based energy and risk management company, announced that it has entered into a partnership agreement with Australia’s Macquarie Bank to begin marketing weather derivative products there and in New Zealand.

The company, a division of UtiliCorp United, sees broad opportunities in the market for “weather-dependent” Australian industries, notably in the energy, agriculture, construction and entertainment sectors, where fluctuations in the weather can have serious economic consequences.

Both companies see a bright future for weather derivatives in the region. They’ll begin a cooperative effort to combine Macquarie Bank’s derivative structuring capabilities with Aquila’s expertise in weather derivative analysis and customized pricing.

The move is the latest venture into weather derivatives for the diversified Aquila. In April it concluded an agreement with Japan’s Mitsui Marine and Fire Insurance Co. to offer similar products in Asian markets, and it has also established an Alliance with London’s Hiscox plc to cover the European market.

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