Deal between Newton Re and Catlin for 3 years at $225m

Risk Management Solutions (RMS) has performed the risk analysis for an industry index securitisation of earthquake and hurricane risk in the US.

Issued by Newton Re, a Cayman Islands special purpose vehicle (SPV), the securities provide $225m of three-year, collateralised cover for Catlin Insurance Company.

The Class A notes provide $87.5m of protection for US earthquake risk and the Class B notes give $137.5m of cover for US hurricane risk.

“This transaction demonstrates the continuing desire among insurers and the capital markets to place insurance risk using straightforward, transparent solutions,” said Peter Nakada, managing director of RMS Consulting.

“Looking forward to 2008, we expect to facilitate higher volumes of risk transfer using established parametric solutions.”