Kamp Re 2005 triggered by Zurich's Katrina losses exceeding $1bn

Standard & Poor's said today that it has received a copy of a proof-of-claim notice from the administrator for Kamp Re 2005.

This claim puts the ultimate net losses in excess of the transaction's $1bn trigger amount.

KPMG Cayman Islands, the claims reviewer, will have 20 calendar days from receipt of the notice to evaluate the claim.

If KPMG Cayman Islands provides a claims review letter with a verified amount of paid losses in excess of the trigger amount, Kamp Re 2005 will make a reinsurance payment to Swiss Reinsurance America by 14 December 2007.

"Upon receipt of a copy of the claims review letter, we will revise the rating on Kamp Re's 2005 $190m floating-rate, principal-at-risk notes to 'D' from 'CC'," explained Standard & Poor's credit analyst Gary Martucci.

"Until that time, the rating on the notes remains on CreditWatch with negative implications, where it was placed on 5 October 2005."

Kamp Re 2005 was a bond put together by Swiss Re in August 2005 to cover Zurich Financial Services wind exposures, along with earthquake losses that could result from activity on the New Madrid Fault area, which is located in the Midwest.

The bond was triggered when Zurich’s Katrina losses exceeded $1bn.