Munich Re adds to windstorm loss protection

In order to attain additional protection against Western Europe windstorm losses, Munich Reinsurance Co. recently placed catastrophe bonds worth $129.9 million.The bonds are meant to complement the Company’s existing retrocessional reinsurance program, according to Thomas Blunck, a management board member at Munich responsible for retrocession and capital markets solutions

Dubbed “Aiolos” otherwise known as the Greek god of winds the bonds have a term of Nov. 18, 2005 until March 31, 2009 and will be triggered in the case of a 1-in-100-year windstorm event in Western Europe. The deal defines this circumstance as “the United Kingdom up to and including 55 degrees latitude north of the equator, continental France, Belgium, the Netherlands and Germany.”Standard & Poor’s Corp. rated the bonds as BB+, according to Munich.