German insurer Hannover Re is coming to market to offload its exposure to catastrophic damage from earthquakes on the western coast of the United States, Canada and Mexico.

The as-yet unsized Acorn Re Ltd. Series 2015-1 will issue a single tranche of notes that will pay investors a variable rate over the next three years, unless an earthquake of a certain magnitude occurs within four specified locations. The amount of principal and interest that Hannover Re is entitled to keep depends on the magnitude of the earthquake.

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