Azzurro Re I Ltd

The magnitude 6.2 earthquake which struck the Umbria region of Italy overnight is not expected to be strong enough to trigger the Azzurro Re I Limited catastrophe bond, according to Zurich, Switzerland based ILS fund manager Plenum Investments.

A magnitude 6.2 earthquake has struck overnight in the Umbria area of Italy, with early reports of 10 deaths, people still trapped and widespread damage to buildings and structures in the affected region.

Italian non-life insurance company Assicurazioni S.p.A. values the reduced counterparty credit risk associated with the fully-collateralized reinsurance protection it sourced from the capital markets through the recent Azzurro Re I Limited catastrophe bond.

Italian insurer and first time catastrophe bond sponsor UnipolSai Assicurazioni S.p.A.’s Italian and European earthquake cat bond, Azzurro Re I Limited, has been upsized by one-third to €200m, while pricing has moved to just above the midpoint of guidance.

A new catastrophe bond has been launched which is set to become the first securitisation of earthquake risks in continental Europe on an indemnity basis. Azzurro Re I Limited is a €150m earthquake cat bond sponsored by Italian insurer UnipolSai Assicurazioni S.p.A.