Japanese Insurer Raises Earthquake Reinsurance Cover

Mitsui Marine and Fire Insurance Company Ltd., Tokyo, has obtained US$ 30 million in reinsurance cover backed by event-linked swap transactions it was announced yesterday. The cover was arranged with capital markets investors by Swiss Re Capital Markets.

A member of the Mitsui conglomerate, Mitsui Marine and Fire Insurance Company, Ltd. is a property and casualty insurer with assets in excess of US$ 31 billion, as of 31 March 1997.

Coverage for earthquake risks is available for a three-year term beginning 1 April 1998. Payment will be determined by the magnitude of earthquakes in and around the Tokyo region rather than to actual insurance losses. EQECAT, Inc., provided the earthquake risk analysis.

"Many of our clients will need additional financial protection as Japan proceeds with the 'Big Bang' and financial deregulation," said Takashi Kawahara, Mitsui Vice President. "This new avenue for coverage is one way we expect to support the needs of policyholders."