Catastrophe modeler RMS announced Tuesday that the company conducted the risk analysis for a new catastrophe bond issued by VenTerra Re Ltd, a special purpose vehicle for investors.
The bond, VenTerra Re Ltd. (Series 2013-1), transfers $250 million of multi-peril risk to the capital markets and is the first time QBE insurers are participating in such a transaction.
The bond is also the first issuance to provide cover to the region of Australia on an indemnity basis.
RMS said it provided modeling of industrial and commercial risks using its unique Industrial Facilities Model, calibrated with billions of dollars of global claims data, and risk models for Australia.
To conduct the risk analysis, RMS used its North America Earthquake Model, and for the first time for this type of deal its Australia Earthquake model and Australia Cyclone model.
Separately, Aon Benfield announced that it placed the deal.
“VenTerra Re Ltd. provides subsidiaries of QBE Insurance Group Limited (QBE) with $250 million of multi-year collateralized protection against U.S. and Australia earthquakes and Australia cyclones on an indemnity basis for a period of three years commencing January 1, 2014,” Aon Benfield’s announcement said.
Sources: RMS, Aon Benfield