Zurich Financial has announced the completion of its $225m catastrophe bond, Lakeside Re II Ltd. The three year deal will protect its subsidiaries Zurich American Insurance Co. Ltd. and Zurich Insurance Co. Ltd. against potential claims from certain qualifying earthquakes across the state of California. The offering is said to have been oversubscribed although Zurich didn’t take the opportunity to upsize the deal for further cover.
Separately, Munich Re issued an announcement about its part in the deal as joint lead structuring agent as it helped place the bond with institutional investors in the EU and Switzerland via its subsidiary Munich Re Capital Markets GmbH.
The preliminary rating assigned by Standard and Poor’s has not been changed and the notes are still rated ‘BB-‘.
Full details of the transaction are available in our Deal Directory.
The press release from Zurich can be read here and from Munich Re can be read here.
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