|[January 09, 2013]
AIG Obtains $400 Million of Reinsurance Coverage
NEW YORK --(Business Wire)--
AIG today announced that it has entered into a reinsurance transaction
with Compass (News - Alert) 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 buinesses are market leaders in property casualty insurance,
life insurance and retirement services, mortgage insurance, and aircraft
Additional information about AIG can be found at www.aig.com
| YouTube (News - Alert): www.youtube.com/aig
|Twitter (News - Alert): @AIG_LatestNews|
LinkedIn (News - Alert): 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.
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