Zurich Insurance Group and Swiss Re have announced that Zurich has obtained, through its subsidiaries Zurich American Insurance Company and Zurich Insurance Company Ltd, a 3-year $270 million catastrophe excess of loss reinsurance protection from Lakeside Re III Ltd. to cover the risk of earthquakes in specific territories in North America.
“The cover offers protection on an annual aggregate basis,” Zurich said. “This reinsurance transaction is a replacement of the expiring 2009 Lakeside Re II Ltd. transaction.”
Swiss Re explained that “Lakeside Re III Ltd. is a Bermudian special purpose reinsurer which provides Zurich three years of excess of loss reinsurance protection on an annual aggregate basis for earthquake losses in specific territories in North America.”
Jean-Louis Monnier, Head of ILS Europe at Swiss Re Capital Markets, lauded the reinsurer’s “support of Zurich’s risk management objectives,” adding that the “transaction demonstrates Swiss Re’s strong commitment to serve our clients in transferring natural catastrophe risks to the capital markets and underlines our strong market position in developing innovative and efficient catastrophe bond products.”
Sources: Zurich Insurance and Swiss Re
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