Aon Capital Markets, Chicago, said yesterday it has fully placed a $300 million catastrophe bond for a Rhode Island-based insurer.
The bond covers Pacific Northwest earthquake exposure for Johnston, R.I.-based FM Global.
Aon Capital Markets President Paul Schultz said he expects further significant demand for catastrophe bonds this year after record issuance already.
"The deal was well received by investors and reflects the demand for diversifying perils," he said.
The notes were issued by Cascadia II Ltd., a Cayman Islands exempted company established for this transaction and rated "double-B-plus" by Standard & Poor's.
Coverage provided by the notes is based on magnitude and location triggers.
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