Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

S&P downgrades some Avalon Re notes


Standard & Poor’s have announced that they have dropped their rating of the Avalon Re Ltd. class C notes to CC from CCC-. Avalon Re is a 2005, 3 year insurance linked security from Oil Casualty Insurance Ltd, see our Deal Directory for more info.

The downgrade follows notification that a steam pipe explosion in New York City on July 18th 2007, would be covered under the terms of the agreement. “To date, Avalon Re Ltd. has experienced $297 million of covered losses due to Hurricane Katrina and the explosion at the Buncefield oil depot,” said Standard & Poor’s credit analyst Gary Martucci. “This leaves only $3 million of covered losses that can be incurred prior to any losses being borne by the Class C noteholders.” It’s said that losses could be up to $50m

Standard & Poor’s is not taking action on the Class A and B notes, as there are currently no claims in progress which could cause further losses to Avalon Re.

See Standard & Poor’s for more detail (registration required).

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis ILS NYC 2023 - Insurance-linked securities conference in New York City

Get a ticket soon to ensure you can attend. Secure your place at the event here!

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.