Insurance Linked Securities

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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:

Extensive expertise

Benefit from combined capital market and reinsurance expertise.

Bespoke solutions

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?

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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

Neutral consulting

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

One-stop shop

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.

Flexible solutions

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.

Proven performance

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.

For clients

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