Allianz issues cat bond covering flood risks
Allianz Global Corporate & Specialty has issued a $150 million cat bond to transfer the risks of severe river floods in Great Britain and earthquakes in Canada and the United States (excluding California). See various descriptions of this bond. This is believed to be the first cat bond covering flood risks, and was written on a parametric basis, using a model prepared by Risk Management Solutions. This is the first bond issued using Blue Wings Ltd., a Cayman Islands-based special purpose vehicle, and is intended to be the first part of a $1 billion program.
