4 April 2013ILS

Bermuda to host Turkish cat bond

The Turkish Catastrophe Insurance Pool (TCIP) has opted to establish a Bermuda-domiciled SPI to host its latest ILS bond, which will provide multi-year coverage for Turkish earthquake risk.

The deal - Bosphorous 1 Re - is the second ILS bond brought to market by the TCIP, following on from Ianus Capital, which was sponsored by Munich Re back in 2009. That deal will mature in June of this year, with Bosphorous 1 Re taking over where the older deal left off.

Bosphorous 1 Re is looking to issue $100 million of cat bond notes, providing coverage for three years of earthquake risk on a per-occurrence basis.  It will be regarded as a welcome addition by investors to the ILS market, providing a valuable diversifying peril to what is largely a US cat-focused market.