Swiss Re Insurance-Linked Fund Management

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Mariah Re Ltd. issues another $100m thunderstorm catastrophe bond notes


Just over a month after American Family Mutual Insurance Co. closed its first ever catastrophe bond transaction, the $100m Mariah Re Ltd. Series 2010-1 thunderstorm catastrophe bond, they have again tapped the capital markets to secure a second tranche of Series 2010-2 cat bond cover under the same programme. Mariah Re Ltd. , a Caymans Islands SPV,was heavily oversubscribed the first time out so it seems sensible to take advantage of current cat bond market conditions to secure more cover.

The first Mariah Re tranche, issued in November, protected AmFam against U.S. thunderstorm losses (and was the first cat bond to cover solely thunderstorm risks) and had an initial attachment point of $825m. This new tranche is said to secure a layer of cover below that by attaching at $725m. A covered event is any severe thunderstorm with an event index equal to or greater than $10m and it has a maximum event index for a single event of $300m.

Mariah Re uses a PCS industry loss index  as its trigger based on insured personal and auto property losses. For more details on the structure of Mariah Re see our coverage on the first issuance when it began marketing, when it completed and when we recognised Mariah Re was issued under a shelf programme which could have future issuances.

Details of both Mariah Re Ltd. Series 2010-1 and Series 2010-2 have been included in our catastrophe bond Deal Directory.

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