Allianz secures $274.7 million cat bond against European windstorms

Allianz SE on Tuesday said it has used a catastrophe bond to secure 250 million euros ($274.7 million) of coverage against European windstorms.

Allianz Re structured the transaction for the Allianz Group with Blue Sky Re DAC, a special purpose vehicle incorporated in Ireland, to provide the 250 million euros of cover, which runs from January 2024 to December 2026, triggered by an insurance industry loss index, Allianz said in a statement.

Blue Sky is the first cat bond protecting Allianz’s own account in more than a decade and is part of the overall catastrophe reinsurance purchased by Allianz, the group said in a statement.

“Restarting our cat bond journey with Blue Sky Re in 2023 broadens our risk mitigation toolbox,” Thorsten Fromhold, group reinsurance officer for Allianz Re, said in the statement.