Aon Benfield Securities places $250 million cat bond protecting against U.S., Australia earthquakes

Aon Benfield Securities, the investment banking division of Aon Benfield, announced Tuesday that it has successfully underwritten and placed a $250 million catastrophe bond protecting against United States and Australia earthquakes, as well as Australia cyclones.

The cat bond was issued by VenTerra Re Ltd, a Bermuda-based special purpose insurer, and provides collateralized protection for QBE Insurance Group’s subsidiaries, on an indemnity basis for a period of three years (effective Jan. 1). 

“VenTerra Re Ltd. is the first-ever catastrophe bond that has secured coverage for Australian perils for a primary insurance company on an indemnity basis,” Aon said.

“We are pleased to have successfully placed VenTerra Re Ltd. on terms attractive to QBE, with coverage substantially similar to what QBE has been able to secure in the traditional reinsurance market,” Paul Schultz, Aon Benfield Securities’ CEO commented in a statement. “VenTerra Re Ltd. was very well received by investors, who welcomed the addition of a new sponsor to the market.”