Hong Kong’s Insurance Authority (IA) has welcomed the recent issuance of the latest and sixth catastrophe bond under its insurance-linked securities (ILS) regulatory regime, saying the US $35 million Silk Road Re Limited cat bond sponsored by Taiping Re reinforces its commitment to the sector.
As we’ve been reporting, Taiping Re secured a three-year source of fully-collateralized retrocessional reinsurance through its debut Silk Road Re catastrophe bond.
The Silk Road Re cat bond notes provide Taiping Re with protection for losses from both Chinese earthquake risk and US named storm risks, while the structure utilises both parametric and industry loss triggers.
As a result, the Silk Road Re catastrophe bond is the first multi-peril and territory issuance to come out of Hong Kong and also the first cat bond issued under the Hong Kong ILS regulatory regime to feature multiple triggers.
FULL ORIGINAL PUBLICATION HERE
