EQECAT provides risk modelling to EDF’s Pylon II Capital catastrophe bond

by Artemis on August 15, 2011

Risk modeller EQECAT, Inc. have issued a press release regarding their involvement in the recently completed Pylon II Capital Ltd. catastrophe bond which transferred some of EDF’s European windstorm risks in France to the capital markets. The press release provides a little extra detail to our previous coverage on this transaction.

Full details on Pylon II Capital Ltd. can be found in our catastrophe bond Deal Directory.

The press release follows below:

EQECAT Provides Risk Modeling to ERDF in Transferring European Windstorm Risk to the Capital Markets

Catastrophe risk modeling firm EQECAT, Inc. provided risk modeling services to Electricité Réseau Distribution France S.A. (ERDF) in the issuance of a €150 million catastrophe bond transferring European windstorm risk to the capital markets. ERDF is the largest European electricity distributor. EQECAT’s risk modeling services involved assessing the vulnerability of ERDF’s aerial electricity distribution network to the European windstorm peril; validating the risk assessment against the historical performance of the distribution network; and designing a parametric index to efficiently and transparently allow the cession of this risk to the capital markets through the Pylon II catastrophe bond trigger.

“The transaction builds on a history of successful bond issuances using EQECAT’s industry leading European windstorm model, Eurowind™, to assess the risk,” said Michel Voronkoff, EQECAT Manager of Europe Modelling. “This transaction leverages the Eurowind™ model’s robust stochastic event set to quantify the risk to the transaction.”

EQECAT’s European extra-tropical cyclone model is the first to incorporate a hybrid stochastic event set combining the most suitable aspects of both measured and modeled windstorm characteristics. The EQECAT Eurowind model covers 22 countries, providing the largest geographical area of risk of any commercially available probabilistic European wind model.

EQECAT, Inc. provides state-of-the-art products and services to the global property and casualty insurance, reinsurance and financial markets. EQECAT is the technical leader and innovator of catastrophe risk management models that quantify exposure to a range of natural and man-made catastrophic risks.

Through its modeling software platform, WORLDCATenterprise, EQECAT enables clients to quantify and manage the potential financial impact of natural hazards. WORLDCATenterprise includes 181 natural hazard software models for 95 countries spanning six continents. These models are based upon innovative applications of the latest science, engineering expertise, claims and exposure data and advanced mathematics.

EQECAT, a subsidiary of ABSG Consulting Inc., was founded in 1994 and is headquartered in Oakland, California.

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