Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Hannover Re successfully closes Eurus II cat bond


Catastrophe bond issuance for 2009 now stands at $1.8b thanks to the latest deal to successfully close, Eurus II. Hannover Re has issued this €150m cat bond to protect itself from European windstorms, covering Belgium, Denmark, Germany, France, United Kingdom, Ireland and the Netherlands. Eurus II is a renewal of a 2006 transaction.

Eurus II began life being marketed as a €75m deal which doubled in size to €150m due to investor demand, demonstrating the attractiveness of this deal to investors who were seeking to diversify into ILS but also diversify the risks born by taking a piece of this European peril deal.

Any payout will be measured against an index of windspeed across weather stations in each country. Given the magnitude of losses suffered by the industry from windstorm Klaus last year this seems a very sensible deal from Hannover Re.

Read more about the structure of this deal in the Artemis Deal Directory.

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