Zurich Insurance Group said today that it issued a three-year, $270 million catastrophe bond called Lakeside Re III.
Lakeside Re III provides Zurich American Insurance and Zurich Insurance Co. Ltd. with three years of excess of loss reinsurance protection on an annual aggregate basis for earthquake losses in specific territories in North America. This reinsurance transaction is a replacement of the expiring 2009 Lakeside Re II Ltd. transaction.
The Lakeside Re III catastrophe bonds have a floating coupon consisting of a fixed 8% plus a variable investment yield received by the issuer on the underlying assets. Standard & Poor's assigned a ‘B+’ rating on the notes. Swiss Re Capital Markets was the sole bookrunner and joint lead structuring agent for the offering.