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(From Reinsurance)
Risk Management Solutions (RMS) has carried out the risk analysis for a EUR190m securitisation by Pylon covering damage from windstorm for an unnamed European electricity supplier.
The placement was co-managed with Swiss Re Capital Markets and covers five years. It will be in two tranches, with the first EUR120m having a 'BB+' (marginal) rating from Standard & Poor's (S&P) and the second EUR70m having a 'BBB+' (good) rating, also from S&P.
Utility companies all over the world are exposed to windstorm catastrophe loss because of the increased risk of damage to their transmission and distribution (T&D) systems, such as power lines and electricity pylons.
In 1999 the Lothar windstorm inflicted a considerable amount of damage when it hit France, with wind speeds of up to 112 miles an hour. It was followed a day later by windstorm Martin, which was slightly less powerful, with winds of up to 98 miles an hour.
Falling trees severed power lines and around three million people were ...