Allianz to issue third Blue Fin Ltd. catastrophe bond

by Artemis on May 8, 2010

Allianz is preparing a third catastrophe bond issue under it’s Cayman Island SPV Blue Fin Ltd. This third series of Blue Fin Ltd. is designed to provide Allianz with per-occurrence and aggregate protection against U.S. hurricane and earthquakes for three years (until May 2013).

The deal is currently sized at $150m, $100m of Class A notes providing per-occurrence coverage and $50m of Class B notes providing aggregate coverage. The deal is due to complete during May and run until May 2013 with the possibility to extend in three month increments to allow for loss development and reporting.

AIR Worldwide are providing risk modelling services to this transaction and will calculate index values on which losses will be decided. Swiss Re Capital Markets and Aon Benfield Securities are arranging the deal.

Collateral is being invested in direct U.S. government obligations with high ratings. Allianz SE, the parent company, are acting as guarantor to the deal counterparty which is Allianz Argos 14 GmbH.

Standard & Poor’s have provided preliminary ratings of ‘B-‘ to the Class A notes and ‘BB’ to the Class B notes.

Full details on this latest Blue Fin Ltd. transaction are available in our catastrophe bond Deal Directory and will be updated as more information becomes available.

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Bernard Ysebaert May 14, 2010 at 12:56 pm


As Custodian we have been approached by a new client who would like to participate and invest into this CAT bond. However our experience is relevantly new and we are not sure how these trades settle. The information in Bloomberg show these Bonds as Private Placement, does this mean we Subscribe into these funds through an offer? Once this subscription accepted will the ‘shares’ been delivered onto a clearing house such as for e.g. our Euroclear account or DTC one? Will they be held under registered form instead, such as funds are into the issuers books?
We would appreciate your cooperation in this matter.
Thanks and regards,
Bernard Ysebaert

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