Insurance Linked Securities
Supporting you with capital market solutions
Expanding traditional reinsurance programs to include alternative risk transfer solutions
In addition to structured reinsurance and traditional reinsurance, benefit from the access to alternative risk transfer (ART) solutions. Alternative in the sense that they enable a direct transfer of uncorrelated insurance risks to capital market investors.
The most common ART instruments are Insurance Linked Securities (ILS), in particular catastrophe bonds, to cover peak risks from natural disasters. Other well-known ART formats are sidecars, swaps and derivatives.
Our ILS offering for insurers
ILS are mainly used to protect property risks against natural hazards. However, there are also examples for other perils.
Our proven ILS capability offers you the following:
Benefit from combined capital market and reinsurance expertise.
Integrated solutions tailored to your risk transfer needs.
Extensive track record
Enjoy efficient solutions based on decades of capital market experience and transaction history.
Combining two worlds
Use capital market-based solutions as a complement to traditional reinsurance.
Alternative risk transfer structures
Choose from a range of options that includes cat bonds, side cars, or derivatives.
Various trigger mechanisms
Opt for triggers based on indemnity, a parametric basis or market loss index, etc.
Would you like to know more?
Our experience forms the basis for your insurance linked security
Munich Re offers you a comprehensive service from portfolio and risk analysis, structuring to the execution of capital market transactions.
The benefits of working with us for your capital market transaction
Whether it be a capital-market-based insurance solution such as cat bonds, derivatives or traditional reinsurance: We advise you so as to jointly find the most beneficial solution for your business.
Client-focused structuring approach
We adopt a unique structure with experts, focusing on individual bespoke elements (modelling, collateral, legal, regulatory, ...), which allows us to offer our structuring services until the maturity of a transaction.
Access a large investor base
Leverage the broad institutional investor base we have established world-wide as a sponsor of our own sidecar programs and our global retrocession program.
Optimise your transaction
As an ILS service provider with risk capacity of our own, we are able to supplement standard capital-market products with traditional reinsurance features, making the whole transaction more efficient for you.
What ILS solutions can help you achieve
Typically, you can employ capital market solutions to get additional natural catastrophe capacity or to explore an additional source of capacity.
Why you should partner with Munich Re for your capital market solutions
You get everything you need from a single partner that combines reinsurance expertise, features and capacity with deep capital market knowledge and a variety of formats.
Broaden your options with solutions independent of any particular structure. Be it a catastrophe bond, a derivative or a sidecar. Choose from a variety of trigger types such as parametric, market loss, indemnity or a hybrid format, the trigger that best fits to your exposure.
High process and transaction security thanks to our track record of successfully completed transactions for primary insurers, corporates and public sector clients.
A valuable contact-base
Gain the access you need to the relevant investors in the insurance linked securities space.
Let’s get in touch
Discuss your capital market challenges with us and together, let’s find the relevant reinsurance structures which match your local regulatory and business needs.
ILS Success Stories
The following table provides an overview of insurance linked securities transactions that Munich Re was involved on behalf of clients or issued for its own book.
|Transaction||Issuance Date||Maturity Date||Volume||Perils covered|
|Azzurro Re II DAC||Jul-20||Jan-24||EUR 100m||Earthquake Italy|
|Vitality Re XI Limited||Jan-20||Jan-24||USD 200m||US health risks|
|World Bank Catastrophe Bond for the Republic of the Philippines||Nov-19||Dec-22||Class A – USD 75m||Earthquake|
|World Bank Catastrophe Bond for the Republic of the Philippines||Nov-19||Dec-22||Class B – USD 150m||Tropical Cyclone|
|Atmos Re DAC||Feb-19||Feb-22||EUR 45m||Atmospheric perils, flood, snow pressure|
|Vitality Re X Limited||Jan-19||Jan-23||USD 200m||US health risks|
|Vitality Re IX Limited||Jan-18||Jan-22||USD 200m||US health risks|
|World Bank Catastrophe Bond for the Fonden||Aug-17||Aug-20||USD 150m||Earthquake Mexico|
|World Bank Catastrophe Bond for the Fonden||Aug-17||Dec-19||USD 100m||Earthquake Mexico|
|World Bank Catastrophe Bond for the Fonden||Aug-17||Dec-19||USD 110m||Earthquake Mexico|
|World Bank Catastrophe Bond for the Pandemic Emergency Financing Facility (PEF)||Jul-17||Jul-20||Class A – USD 225m||Pandemic|
|World Bank Catastrophe Bond for thePandemic Emergency Financing Facility (PEF)||Jul-17||Jul-20||Class B – USD 95m||Pandemic|
|Lion II Re DAC||Jun-17||Jul-21||EUR 200m||Europe Windstorm, Italy Earthquake, Europe Flood|
|Vitality Re VIII Limited||Jan-17||Jan-21||USD 200m||US health risks|
|Vitality Re VII Limited||Jan-16||Jan-20||USD 200m||US health risks|
|Bosphorus Ltd.||Aug-15||Aug-18||USD 100m||Earthquake Turkey|
|Azzurro Re I Ltd.||Aug-15||Aug-18||EUR 200m||Earthquake Europe|
|World Bank Catastrophe Bond for the Caribbean Catastrophe Risk Insurance Facility (CCRIF)||Jun-14||Jun-17||USD 30m||Caribbean Earthquake & Tropical Cyclone|
|Lion I Re Ltd.||Apr-14||Apr-17||EUR 190m||Europe Wind|
|VenTerra Re Ltd.||Dec-13||Jan-17||USD 250m||Earthquake US, Australia Earthquake & Cyclone|
|Queen City Re Ltd.||Dec-13||Jan-17||USD 75m||Wind US|
|Bosphorus 1 Re Ltd.||Apr-13||May-16||USD 400m||Earthquake Turkey|
|Tar Heel Re Ltd.||Apr-13||May-16||USD 500m||Hurricane US|
|Lakeside Re III Ltd.||Dec-12||Jan-16||USD 270m||Earthquake Canadian & US|
|MultiCat Mexico Ltd.||Oct-12||Dec-15||Class A – USD 140m||Earthquake Mexico|
|MultiCat Mexico Ltd.||Oct-12||Dec-15||Class A – USD 75m||Earthquake Mexico|
|MultiCat Mexico Ltd.||Oct-12||Dec-15||Class A – USD 100m||Earthquake Mexico|
|Johnston Re Ltd. Series 2011-1||May-11||May-14||Class A – USD 70m||Hurricane US|
|Johnston Re Ltd. Series 2011-1||May-11||May-14||Class A – USD 132m||Hurricane US|
|Shore Re Ltd.||Jul-10||Jul-13||USD 96m||Hurricane US|
|Johnston Re Ltd. Series 2010-1||May-10||May-13||USD 200m||Hurricane US|
|Johnston Re Ltd. Series 2010-1||May-10||May-13||USD 105m||Hurricane US|
|Ianus Capital Ltd.||May-09||Jun-12||USD 70mn||Earthquake Turkey, Europe Wind|
|Lakeside Re II Ltd.||Dec-09||Jan-13||USD 225m||Earthquake US|
|Muteki Ltd.||May-08||May-11||USD 300m||Earthquake Japan|
|Midori Ltd.||Oct-07||Oct-12||USD 260m||Earthquake Japan|
|Lakeside Re||Dec-06||Dec-09||USD 190m||Earthquake US|
For Munich Re*
|Transaction||Issuance Date||Maturity Date||Volume||Perils covered|
|Eden Re II Ltd. (Series 2022-1)||Dec-21||Mar-26||USD 190m||"various perils"|
|Eden Re II Ltd. (Series 2021-1)||Dec-20||Mar-25||USD 235m||"various perils"|
|Eden Re II Ltd. (Series 2020-1)||Dec-19||Mar-24||USD 285m||"various perils"|
|Eden Re II Ltd. (Series 2019-1)||Dec-18||Mar-23||USD 300m||"various perils"|
|Eden Re II Ltd. (Series 2018-1)||Dec-17||Mar-22||USD 300m||"various perils"|
|Eden Re II Ltd. (Series 2017-1)||Dec-16||Mar-21||USD 360m||"various perils"|
|Eden Re II Ltd. (Series 2016-1)||Dec-15||Mar-20||USD 360m||"various perils"|
|Queen Street XI Re dac||Dec-15||Jun-19||USD 100m||Hurricane US, Australian Cyclone|
|Queen Street X Re Ltd.||Mar-15||Jun-18||USD 100m||Hurricane US, Australian Cyclone|
|Eden Re II Ltd. (Series 2015-1)||Dec-14||Mar-19||USD 275m||"various perils"|
|Eden Re I Ltd. (Series 2015-1)||Dec-14||Mar-19||USD 75m||"various perils"|
|Queen Street IX Re Ltd.||Feb-14||Jun-17||USD 100m||Hurricane US, Australian Cyclone|
|Eden Re I Ltd. (Series 2014-1)||Dec-13||Mar-18||USD 75m||"various perils"|
|Queen Street VIII Re Ltd.||Jun-13||Jun-16||USD 75m||Hurricane US, Australian Cyclone|
|Queen Street VII Re Ltd.||Oct-12||Apr-16||USD 75m||Hurricane US, Europe Wind|
|Queen Street VI Re Ltd.||Jul-12||Apr-15||USD 100m||Hurricane US, Europe Wind|
|Queen Street V Capital Ltd.||Feb-12||Apr-15||USD 75m||Hurricane US, Europe Wind|
|Queen Street IV Capital Ltd.||Oct-11||Apr-15||USD 100m||Hurricane US, Europe Wind|
|Queen Street III Capital Ltd.||Jul-11||Aug-14||USD 150m||Europe Wind|
|Queen Street II Capital Ltd.||Mar-11||Apr-14||USD 100m||Hurricane US, Europe Wind|
|EOS Wind Ltd.||May-10||May-14||Class A - USD 50m||Hurricane US|
|EOS Wind Ltd.||May-10||May-14||Class B - USD 30m||Hurricane US, Europe Wind|
|Queen Street Ltd.||Mar-08||Mar-11||Class A - USD109m||Europe Wind|
|Queen Street Ltd.||Mar-08||Mar-11||Class B - USD 156m||Europe Wind|
|Nathan Ltd.||Feb-08||Jan-13||USD 100m||Mortality|
|Carillon Ltd. II||May-07||Jan-11||USD 150m||Hurricane US|
|Carillon Ltd.||Jun-06||Jan-10||Class A1 - USD 51m||Hurricane US|
|Carillon Ltd.||Jun-06||Mar-07||Class A2 - USD 23,5m||Hurricane US|
|Carillon Ltd.||Jun-06||Mar-07||Class B - USD 10m||Hurricane US|
|Aiolos Ltd.||Nov-05||Apr-09||USD 129m||Europe Wind|
|PRIME Capital||Dec-00||Jan-04||USD 129m||Hurricane US, Europe Wind|
|PRIME Capita||Dec-00||Jan-04||USD 6m||Hurricane US, Europe Wind|
|PRIME Capital||Dec-00||Jan-04||USD 3m||Hurricane US, Europe Wind|
|PRIME Capital||Dec-00||Jan-04||USD 159m||Hurricane US|
|PRIME Capital||Dec-00||Jan-04||USD 6m||Hurricane US|
|PRIME Capital||Dec-00||Jan-04||USD 3m||Hurricane US|
* excluding private transactions