Allianz has completed a $175 million catastrophe bond through a new shelf program, Blue Danube II, according to the deal’s underwriters.
Swiss Re and GC Securities acted as joint book runner and joint structuring agent.
In a press release published today, GC Securities said this is the second time that Allianz has accessed PCS-MITT triggered cat bond protection and the eighth overall cat bond issuance benefitting Allianz since 2007.
The Series 2013-1 Notes provides three years of per-occurrence protection for named storms affecting the U.S., Mexico and the Caribbean; and for earthquakes affecting Canada and the U.S. Standard & Poor's has published a 'BB+' rating to the notes.
Swiss Re said the deal uses modeled industry trigger transaction, developed by its Swiss Re Capital Markets division, which takes industry loss estimates for the U.S. and Canada and weighs them, post-event, based on certain applicable modeled portfolios. The transaction utilizes a putable note, issued by the International Bank of Reconstruction and Development and underwritten by Swiss Re Capital Markets, as collateral.
GC Securities said the deal has several new features not seen in Allianz' previous transactions, including an expanded hurricane definition to include named storms as well as adjustments to how losses in Mexico and the Caribbean are factored into triggering the protection.
