Swiss Re Insurance-Linked Fund Management

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Blue Fin Ltd to issue second cat bond; no swap counterparty to be used


Blue Fin Ltd. a special purpose vehicle incorporated in the Cayman Islands is marketing a new catastrophe bond deal on behalf of Allianz Argos 14 GmbH. Allianz is entering into this deal to provide itself with a source of multi-year reinsurance for certain U.S. hurricanes and earthquakes. This 3 year, $150m deal has been given a preliminary rating of ‘BB-‘ by Standard & Poor’s.

Goldman Sachs and Aon Benfield Securities Inc. are arranging and marketing the deal with Allianz SE acting as counterparty guarantor. As mentioned in the headline; the highlight of this deal, and another sign of the way the market has reacted and taken heed of the past years difficulties, is the lack of a total-return swap counterparty. In it’s place the notes from Blue Fin Ltd. will be invested in Kreditanstalt fur Wiederaufbau’s (KfW) floating-rate notes with a final maturity of 3.75 years and puttable quarterly after the first six months. KfW is an extremely highly rated (AAA/Stable/A-1+) institution and its obligations are guaranteed by the German government.

Further details of this deal are now included in the Artemis Deal Directory.

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