FEMA lists cat bonds for flood reinsurance coverage

Insurance-linked securities valued at $575 million have been issued to secure storm-linked flood reinsurance protection for the US Federal Emergency Management Agency (FEMA). 

The three-year bonds were issued by the National Flood Insurance Programme through Floodsmart Re and have been listed on the Bermuda Stock Exchange. 

The catastrophe bonds will reportedly be used to collateralise retrocessional reinsurance agreements between special purpose insurer FloodSmart Re and ceding reinsurer Hannover Re.

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