Zurich Obtains $225M of California Earthquake Protection

Zurich today announced that it has obtained, through its subsidiaries, Zurich American Insurance Company and Zurich Insurance Company Ltd, a 3-year $225 million catastrophe excess of loss reinsurance protection from Lakeside Re II Ltd. (Lakeside II) to cover the risk of earthquakes in
California.

Source: Source: Zurich Financial Services Group | Published on December 28, 2009

Zurich has entered into a reinsurance transaction with Lakeside II, a special purpose reinsurance company domiciled in the Cayman Islands, to receive up to USD 225 million in payment of losses in the event of one or more California earthquakes during the 3-year period. Lakeside II, in turn, has issued to the capital markets principal at-risk variable rate notes linked to this risk. The catastrophe bond has a floating coupon consisting of a fixed 7.75% plus a variable investment yield received by Lakeside II on the underlying assets. The offering was oversubscribed.

About Zurich

Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.