Munich Re’s Turkish bond unlikely to be triggered by quake
Insurance-linked securities (ILS) investors do not expect the earthquake that struck eastern Turkey on 23 October to threaten the EUR50mn Ianus Capital bond.
The 2009 bond provides reinsurer Munich Re with earthquake cover placed for the Turkish Catastrophe Insurance Pool.
It also covers European wind risk for the reinsurer's own benefit.
The earthquake cover triggers on a modelled loss basis that sources expected to be weighted towards events that occur in Turkey's more populated and better-insured western zones.
However, sources said the sponsor still has several weeks to file an event notice if it wants modelling firm Eqecat to calculate an index number for the event to determine potential payouts from Ianus.
Meanwhile, the MultiCat Mexico bond is also unlikely to have been triggered by Hurricane Rina earlier this month.
Low pressure at the storm's epicentre measured 967mb on 26 October, above the 920mb minimum low pressure required to trigger the notes.