Allianz has sponsored a new catastrophe bond which will provide the group with multi-year risk transfer capacity of €250 million to protect itself against European windstorms.
Allianz entered into a three-year reinsurance agreement with Blue Sky Re DAC, a special purpose vehicle incorporated in Ireland. The notes sold to capital market investors were well received and benefited from high investor demand, said Allianz, noting that this is the first cat bond protecting Allianz’ own account in more than a decade.
The transaction is part of the overall catastrophe reinsurance purchased by Allianz. “It supplements and diversifies Allianz’ sources of reinsurance protection against natural catastrophes and provides a multi-year period of protection running from January 2024 to December 2026,” the company said.
The cat bond would be triggered by an insurance industry loss index.
“Allianz is pleased to secure multi-year protection against our peak natural peril, windstorms in Europe, by returning to the insurance-linked securities market. Re-starting our cat bond journey with Blue Sky Re in 2023 broadens our risk mitigation toolbox,” said Thorsten Fromhold, group reinsurance officer, Allianz Re, the entity responsible for structuring the transaction for the Allianz Group.
Source: Allianz
Photograph: Storm Eunice caused damage to this family home after a 400-year-old oak tree in the garden was uprooted in Stondon Massey, near Brentwood, Essex, England, on Saturday Feb. 19, 2022. (Nicholas.T.Ansell/PA via AP)
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