RMS Performs Analysis For U.S. Earthquake & Hurricane Risk Securitization

Newark, CA - Risk Management Solutions (RMS), one of the world's leading providers of products and services for catastrophe risk management, has performed the risk analysis for an industry index securitization of earthquake and hurricane risk in the U.S. Issued by Newton Re Ltd., a Cayman Islands special purpose vehicle (SPV), the securities provide $225M of three-year, collateralized cover for Catlin Insurance Company Ltd. The Class A notes provide $87.5M of protection for U.S. earthquake risk and the Class B notes give $137.5M of cover for U.S. hurricane risk.

"This transaction demonstrates the continuing desire among insurers and the capital markets to place insurance risk using straightforward, transparent solutions," said Peter Nakada, managing director of RMS Consulting. He added: "Looking forward to 2008, we expect to facilitate higher volumes of risk transfer using established parametric solutions."

SOURCE: Risk Management Solutions