Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Merna Reinsurance II Ltd.

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.


Merna Reinsurance II Ltd. – At a glance:

  • Issuer: Merna Reinsurance II Ltd.
  • Cedent / sponsor: State Farm
  • Placement / structuring agent/s: Aon Benfield have structured the deal
  • Risk modelling / calculation agents etc: RMS
  • Risks / perils covered: U.S. earthquake
  • Size: $350m
  • Trigger type: Indemnity
  • Ratings: S&P: 'BB+'
  • Date of issue: Apr 2010
  • news coverage: Articles discussing Merna Reinsurance II Ltd. from

Merna Reinsurance II Ltd. – Full details:

Merna Reinsurance II Ltd. is designed to provide State Farm with protection against some of it’s earthquake risk in the U.S.

Territories to be covered are Alabama, Arkansas, Illinois, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Ohio, Tennessee, and Wisconsin.

Merna Reinsurance II will cover losses within those territories even if the earthquake epicentre occurred outside one of the named U.S. states.

Merna Reinsurance II Ltd. was incorporated on the 26th of February in Bermuda as a special purpose vehicle for the transaction.

State Farm’s 2007 $1.2B Merna Re deal is due to mature in June this year so this new transaction is seen as a replacement for some of the cover that provided them.

Merna Re II was initially marketed at a value of $250m although market sources were expecting it to close anywhere between $400m-$700m. It finally closed at $350m.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

« Go back to the Catastrophe Bond Deal Directory

Help us keep this valuable resource up to date. If you have information on a catastrophe bond or insurance-linked security deal we have not covered or can see something that we should change, please contact us to let us know.