Fully Collateralized through Catastrophe Bond Issuance by Tradewynd Re
NEW YORK--(BUSINESS WIRE)--Jul. 10, 2013--
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
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
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
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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.
Source: American International Group, Inc.
Matt Gallagher (Media), 212-458-3247