AIG Obtains $400 Million of Reinsurance Coverage
AIG Obtains $400 Million of Reinsurance Coverage
Fully Collateralized through Catastrophe Bond Issuance by Compass Re Ltd.
NEW YORK--(BUSINESS WIRE)-- AIG today announced that it has entered into a reinsurance transaction with Compass Re Ltd., which will provide $400 million of peak-zone protection against U.S. hurricanes and earthquakes. To fund its potential obligations to AIG, Compass Re Ltd. issued a $400 million catastrophe bond in a single tranche.
The transaction closed on December 27, 2012 and provides AIG with fully collateralized coverage against the losses described above on a per-occurrence basis (under a reinsurance agreement related to the notes) through December 2014 using an index trigger with state-specific payment factors. With this transaction, AIG has sponsored $1.85 billion in catastrophe bonds over the past three years, enhancing its role as a market leader in the catastrophe bond marketplace.
Compass Re Ltd. is a special purpose insurer, incorporated under the laws of Bermuda, which has established a program structure enabling potential future catastrophe bond issuances.
AIG is the world's largest insurance organization, serving more than 88 million customers in over 130 countries and jurisdictions around the world. AIG businesses are market leaders in property casualty insurance, life insurance and retirement services, mortgage insurance, and aircraft leasing.
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 jurisdictions, 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.
AIG
Matt Gallagher, 212-458-3247
matthew.gallagher2@aig.com
KEYWORDS: United States North America New York
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