LOMA RE CAT BOND GIVES 2011 ISSUANCE A FINAL BOOST

Bermuda-based reinsurer Argo Re gave the 2011 catastrophe bond book a final boost with a second issuance this year using Cayman islands-based special purpose vehicle Loma Re, reports Artemis. The $100m 2011-2 issue covers Argo Re against multiple risk for two years through to January 2014. In June (IIN 24 June 9 2011) issue 2011-1 provided Argo Re with $100m in protection against second events (no reset) for 18 months after a loss of $30bn as a result of a US hurricane/earthquake or a Japanese earthquake, or after a loss of $10bn through a European windstorm. Artemis reported that the new issue was understood to provide a level of cover higher than this – extending Argo Re's protection against the most serious losses. Loma Re 2011-1 paid a coupon of 950 basis points above Libor.