First terrorism bond opens the way for more
The capital markets look ready to assume more insured risk related to terrorist attacks, after UK reinsurer Pool Re, which has a government guarantee, placed the first catastrophe bond specifically covering the peril. The organisation's equivalents in other countries could consider issuance, writes Jasper Cox.
Pool Re has issued a £75m three yearbond paying an initial 5.9% interest spread. Bondholders are on the hook if the mutual organisation’s member insurance firms suffer more than £500m of net losses related to terrorism attacks.Cat bond issuance — part of the insurance-linked securities ...
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