Amlin secures cat bond with Bermudian insurer

Amlin has completed a $200 million cat bond with a Bermuda-based special purpose insurer that will provide it with reinsurance coverage for US named storm, US earthquake and European windstorm perils.

Tramline Re II, which will provide fully collateralised protection for four years, attaches on an index loss basis equivalent to $500 million. The bond is effective as of January 1, 2015.

Amlin said the deal, structured by Aon Benfield Securities, was in addition to coverage it purchases in the traditional reinsurance markets and replaces a previous Tramline Re coverage which was placed in 2010 and expires on December 31, 2014.

“The protection provided by this bond will complement the cover provided by our traditional reinsurance programme and Amlin’s existing four-year earthquake catastrophe bond which incepted on July 1, 2013,” said Charles Philipps, Amlin CEO.