Allianz sponsors new catastrophe bond covering European windstorm risks

Allianz has successfully sponsored a new catastrophe bond (“cat bond”) which will provide the Group with multi-year risk transfer capacity of EUR 250 million to protect itself against European windstorms. 

This is the first cat bond protecting Allianz’ own account in over a decade. Allianz entered into a three-year reinsurance agreement with Blue Sky Re DAC, a special purpose vehicle incorporated in Ireland. The notes sold to capital market investors were well received and benefited from high investor demand. 

The transaction forms part of the overall catastrophe reinsurance purchased by Allianz. It supplements and diversifies Allianz’ sources of reinsurance protection against natural catastrophes and provides a multi-year period of protection running from January 2024 to December 2026. The cat bond will be triggered by an insurance industry loss index.

“Allianz is pleased to secure multi-year protection against our peak natural peril, windstorms in Europe, by returning to the insurance-linked securities market. Re-starting our cat bond journey with Blue Sky Re in 2023 broadens our risk mitigation toolbox,” says Thorsten Fromhold, Group Reinsurance Officer, Allianz Re, the entity responsible for structuring the transaction for the Allianz Group.