ZFS confirms successful securities placement

ZURICH - Zurich Financial Services Group has announced the successful private placement of $162m of risk linked securities in $60m class A1 notes, $97m class A2 notes, and $5m of preference shares. The transaction will protect Zurich Re from low-frequency, high-severity hurricane and earthquake exposures in the US and Europe. The innovative structure brings the Swiss reinsurer increased flexibility in its reinsurance strategies for clearly defined catastrophe exposures. The securities were issued by Trinom Ltd, a Bermuda based special purpose company, and have an initial maturity of three years. Zurich Re was responsible for project management and structuring in conjunction with Morgan Stanley and Aon Capital Markets who underwrote the issue as joint lead managers. Applied Insurance Research provided the risk modelling and analytical services for the transaction using proprietary hurricane, earthquake and windstorm models.