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Glacier issues $75mn wind and quake bond

Swiss reinsurer Glacier Re joined the list of carriers accessing the capital markets with a $75mn offering under a shelf programme providing it with retrocession cover from windstorm and earthquakes.

The $1.5bn cat bond shelf programme issues notes through Cayman Islands-domiciled special purpose vehicle Nelson Re. The bond will protect Glacier Re against US hurricanes and earthquakes and European windstorms across the UK, France, Belgium, The Netherlands, Germany, Denmark, Ireland, Sweden, Norway, Austria, Luxembourg, and Switzerland.

The cat bond has an indemnity trigger with a modeled loss index, provided by Property Claims Services in the US and AIR Worldwide in Europe, being used to derive losses.

Robbie Klaus, CEO and chief underwriting officer at Glacier Re, said: “This transaction is a significant milestone in Glacier Re’s development. Nelson Re provides us with highly valuable reinsurance protection and broadens Glacier Re’s profile amongst institutional investors. Nelson Re’s shelf programme structure also gives us significant flexibility, to help meet our future risk protection needs.”

Goldman, Sachs & Co acted as sole financial advisor and placement agent for the transaction.

Standard & Poor’s has assigned a B senior secured debt rating to the $75mn class A, series 2007-I principal-at-risk variable-rate notes.

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