LONDON (Reuters) – U.S. insurer Nationwide Mutual Insurance Company is seeking to raise $200 million protection for hurricanes and earthquakes in the United States by selling a catastrophe bond through Cayman Islands-based vehicle Caelus Re.
Standard & Poor's assigned a BB- rating to the notes to be issued by Caelus Re 2013 Ltd, the credit rating agency said on Wednesday.
Catastrophe bonds allow insurers to pass on extreme risks, such as those related to earthquakes or hurricanes, to financial market investors, and are seen as an alternative to reinsurance.
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