Zurich Returns to the Cat Bond Market

Zurich Insurance Group has successfully placed a catastrophe bond worth 150 million dollar, marking its return to the insurance-linked securities (ILS) market; Zurich last issued a cat bond in 2012. According to a statement, the transaction, «Turicum Re 2026-1», forms part of its broadly diversified reinsurance strategy for natural catastrophe risks. Turicum is the ancient name of a Roman settlement located in the centre of Zurich.

The bond provides multi-year protection against losses from US natural catastrophe events, particularly hurricanes and earthquakes. It is structured on a «per occurrence» basis with an indemnity trigger, meaning that payouts are directly linked to the actual losses incurred.

According to the company, the issuance met with strong demand from institutional investors. The high quality of its property insurance portfolio enabled Zurich to place the bond at the targeted volume and at terms below the initial price guidance.

ILS Market Has Become Attractive

«Turicum Re allows us to strengthen our presence and reputation in the growing and strategically important ILS market,» said Paolo Mantero, Head of Group Reinsurance at Zurich. Insurance-linked securities have in recent years become an established complement to traditional reinsurance solutions, offering additional flexibility and cost efficiency.

From an operational perspective, the transaction is also considered strategically significant. The successful placement is the result of consistent management of Zurich’s natural catastrophe exposure while simultaneously expanding its market share in the property insurance business, said James Bracken, Chief Financial Officer of Zurich North America. The catastrophe bond is an important instrument to continue offering high-quality insurance solutions to corporate clients.