The Artemis Catastrophe Bond and Insurance-linked Securities Deal Directory aims to provide a one-stop resource for information on every cat bond and ILS transaction we hold information on. The content of this Deal Directory is provided as is and there will be some omissions. Help us to keep these cat bond and ILS transaction summaries up to date by contacting us if you see an error or omission that you can correct.
Domestic Inc. - At a glance:
- Issuer / SPV: Domestic Inc.
- Cedent / Sponsor: Kemper
- Placement / structuring agent/s: AON Capital Markets, INEX
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: U.S. earthquake risks
- Size: $100m
- Trigger type: Indemnity
- Ratings: S&P: 'BB+'
- Date of issue: Mar 1999
Domestic Inc. - Full details
Insurance linked security providing cover for mid-west and New Madrid fault earthquakes. Triggered when Kempers losses exceed certain level.
The floating rate notes have been rated BB+ by Standar & Poors.
Kemper Insurance issued $100 million of three-year catastrophe bond notes through a U.S. domiciled special-purpose vehicle Domestic Inc.
The offering marks the first time that a cat bond has been issued inside the U.S., which may explain why the deal was heavily oversubscribed and priced at the tight end of market talk, according to David Reilly, a director at Aon Capital Markets in Chicago, which solely underwrote the offering.
The deal was sold to 30 institutional investors, some of which may have been unwilling to buy a non-U.S. issue
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