FM Global may not buy catastrophe bond this year


Interesting article here (from the Providence Journal) which features comments from Shivan Subramaniam, CEO of FM Global, on the issues affecting their business due to the reductions in rates currently being experienced in the market.

He says that the reductions in reinsurance rates may prompt FM Global to refrain from issuing a catastrophe bond this year. He said; “Our treaties don’t renew until July, and that’s about when we will find out whether it makes sense to use the cat-bond market or just use the reinsurance market.” While a catastrophe bond provides FM Global with a guarantee of being repaid for loss events, buying reinsurance is “a lot easier to do.”He added, “If the pricing works out right and we can deal with the credit issues in terms of credit-worthiness, then we’ll automatically go to the reinsurance markets.”

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
CME Group and Storm Exchange weather risk study released

The CME Group (provider of the widest range of benchmark futures and options products available on any exchange) and Storm...