Private catastrophe swap used Paradex-Europe Windstorm.

Munich Re and Tokio Marine Nichido Fire closed a private catastrophe swap recently.

The swap used an industry loss index, Paradex-Europe Windstorm, from Risk Management Solutions (RMS). This transaction now brings the total notional amount of risk transferred using Paradex-Europe Windstorm to over $250m, RMS said.

"This marks an important development in the way catastrophe swap transactions are structured," said Peter Nakada, Managing Director at RMS," and underscores how the index can be applied across the insurance-linked securities market."

Hans Thoenes from Munich Re’s Risk Trading Unit said: "The Paradex index represents an important step in developing a more liquid market for Europe Windstorm risk."