Allianz, with the assistance of Swiss Re, has closed it’s third catastrophe bond issuance under it’s Cayman Islands SPV Blue Fin Ltd. The $150m was issued in two tranches to provide Allianz with three years of per-occurrence and aggregate cover against hurricanes in 31 U.S. states and certain earthquakes in the U.S.
The two tranches are designed to provide different cover to Allianz. The $90m of Class A notes, rated ‘B-‘ by S&P, are designed to provide Allianz with cover against U.S. hurricanes and earthquakes on a per-occurrence basis. The $60m of Class B notes, rated ‘BB’ by S&P, are designed to provide Allianz with cover on an aggregate basis. Both tranches use U.S. money market funds for collateral.
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