Non-life insurance and reinsurance group Amlin plc appreciates the complementary risk transfer role that the completed today Tramline Re II Ltd. (Series 2014-1) catastrophe bond plays alongside its traditional reinsurance cover.
The Tramline Re II catastrophe bond settled today and the addition of this $200m of issuance takes 2014 total issuance of catastrophe bonds and ILS recorded in the Artemis Deal Directory to a record $8.718 billion. At the same time the outstanding catastrophe bond and ILS market hits another record high at $24.953 billion.
The completed cat bond transaction sees Amlin receive up to $200m of coverage for U.S. named storm, U.S. earthquake and European windstorm risks from Bermudian special purpose insurer, Tramline Re II Limited. Tramline Re II in turn is placing a catastrophe bond for this amount into the capital markets with the notes sold to institutional investors.
Amlin Group said that it will benefit from fully collateralised protection over a four year period from 1 January 2015, as a result of the cat bonds issuance. The coverage attaches at an industry index loss basis equivalent to $500m, according to Amlin. The cat bond replaces the Tramline Re Ltd. (Series 2011-1) transaction placed in 2011 which matures at the end of December 2014.
Charles Philipps, Chief Executive of Amlin plc, commented on the deals completion; “The protection provided by this bond will complement the cover provided by our traditional reinsurance programme and Amlin’s existing four year earthquake catastrophe bond which incepted on 1 July 2013.”