Fully Collateralized through Catastrophe Bond Issuance by Tradewynd
NEW YORK--(BUSINESS WIRE)--Dec. 19, 2013--
American International Group (AIG) today announced that it has entered
into multiple reinsurance placements with Tradewynd Re Ltd., which will
provide $400 million of indemnity reinsurance protection against U.S.,
Caribbean and Gulf of Mexico named storms, and U.S. and Canadian
Similar to Tradewynd Re Ltd.'s July 2013 catastrophe bond issuance, this
arrangement includes a diversified portfolio of commercial and consumer
risks. To fund its potential obligations to AIG, Tradewynd Re Ltd.
issued three tranches of notes, one with a one-year term and two with
three-year terms. Due to strong investor demand and favorable pricing,
AIG increased the offering to $400 million from the initial $100 million.
The transaction closed December 18, 2013 and provides AIG with fully
collateralized coverage against losses from the events described above
on a per-occurrence basis (under three reinsurance agreements related to
AIG is a leader in the insurance-linked securities market, sponsoring
over $500 million of indemnity cat bonds in 2013 and $2.375 billion in
total since 2010.
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
| 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.
Source: American International Group, Inc.
Matt Gallagher, 212-458-3247