NN Re chose RMS for its first bond issuance and the first bond issuance using the RMS Europe Severe Convective Storm HD Models
RMS, a world leading risk modeling and solutions company, has conducted the risk analysis for NN Re, part of NN Group, an international financial services company, which will issue a new catastrophe bond through Orange Capital Re DAC. The bond Orange Capital Re DAC (Series 2021-1), transfers €75 million of Europe windstorm and Europe severe convective storm risk to the capital markets and is the first issuance by NN Re. The risk analysis was performed using the RMS Europe Windstorm Models and marks the first issuance to utilize the RMS Europe Severe Convective Storm HD Models.
The RMS Europe Severe Convective Storm HD Models cover the full spectrum of sources of severe convective storm loss, from localized tornadoes and hailstorms to large derechos.
While sometimes viewed as an attritional peril, severe convective storms can cause extensive losses and incomplete observational reporting meaning that relying on historical experience to manage the risk is inadequate. The models employ innovative peer-reviewed technology to model the severe convective storm hazard risk in Europe, as well as an advanced engineering-based vulnerability, accounting for factors such as angle of hailstone impact or roof versus building-facade vulnerability.
Jin Shah, Director at RMS, said: “We are proud to have worked with NN on this innovative and highly successful transaction. The strong support from investors demonstrates the market’s confidence in NN’s cat management and underwriting, as well as RMS EU climate risk modelling capabilities.”