Lakeside Re II Ltd. – Full details:
Zurich has sponsored a $225m catastrophe bond to provide it with protection against earthquakes in California. The transaction was issued by Cayman Islands based SPV Lakeside Re II Ltd.
The deal runs for three years. Zurich’s Lakeside Re I Ltd. cat bond expires at the end of Dec 2009 so this deal seeks to replace it.
It provides cover on a per-occurrence basis to Zurich American Insurance Co. and Zurich Insurance Co. Ltd. for earthquake events in the state of California which trigger losses greater than $500m.
As with many other recent deals the collateral will be invested in highly rated Treasury money market funds.
The offering is said to have been oversubscribed although it didn’t get upsized from the originally marketed values.
The transaction can be extended for up to 24 months for losses after an event to develop.