The coverage provides Puerto Rico with protection against earthquake and hurricane perils, and is the largest government-sponsored parametric transaction on the island.
Aon said the onshore and offshore programme will help drive Puerto Rico’s response to catastrophe events, with rapid liquidity available to assist during recovery and reconstruction efforts.
Proof of loss is not required to trigger a payout through the programme, with quakes or hurricanes breaching a pre-defined threshold generating payment.
Aon also provided advisory and consulting services to the government, and other agencies involved in placing the deal.
Chairman and CEO of Aon Securities Paul Schultz said: “We proactively worked with the government of Puerto Rico to identify capital solutions for closing the protection gap, and collaborated with colleagues across the firm in an Aon united manner to deliver an innovative solution in a dynamic marketplace.”
