Press release from Business Wire
AIG Obtains $125 Million of Five-Year Indemnity Reinsurance Coverage for Diversified Commercial and Consumer Property Portfolios
<p> Fully Collateralized through Catastrophe Bond Issuance by Tradewynd Re Ltd. </p>
Wednesday, July 10, 2013
AIG Obtains $125 Million of Five-Year Indemnity Reinsurance Coverage for Diversified Commercial and Consumer Property Portfolios11:30 EDT Wednesday, July 10, 2013
NEW YORK (Business Wire) -- AIG today announced that it has entered into a five-year reinsurance transaction with Tradewynd Re Ltd., which will provide $125 million of indemnity reinsurance protection against U.S., Caribbean and Gulf of Mexico named storms, and U.S. and Canadian earthquakes. A diversified portfolio of risks is reinsured under the transaction. Commercial lines coverages include commercial property, energy and engineered risks, marine and aviation. Consumer lines coverages include high net worth residential, auto, yacht and fine art. To fund its potential obligations to AIG, Tradewynd Re Ltd. issued a five-year, $125 million single tranche catastrophe bond.
The transaction closed on July 9, 2013 and provides AIG with fully collateralized coverage against losses from the events described above on a per-occurrence basis (under a reinsurance agreement related to the notes) through June 2018. The transaction also includes a feature that allows AIG to shift the covered layer up or down within pre-determined limits.
AIG is a leader in the insurance-linked securities market, sponsoring $2 billion of cat bonds in the last three years. With this transaction, AIG is pleased to further advance capital market participation in insurance risks.
Tradewynd Re Ltd., a special purpose insurer incorporated under the laws of Bermuda, has established a program structure enabling potential future catastrophe bond issuances.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig |Twitter: @AIG_LatestNews| LinkedIn: http://www.linkedin.com/company/aig |
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.
Matt Gallagher (Media), 212-458-3247