Swiss Re readies Multicat Mexico

Graham Village

The Mexican government is attempting to buy further securitized protection to guard against catastrophic loss in a cat bond deal involving Swiss Re. State agency Fonden, the Mexican Fund for Natural Disasters, plans to buy $250m of parametric protection from local insurer Agroasemex, which has reinsured the risk with Swiss Re. The reinsurer will then securitize the risk in four tranches via special purpose vehicle Multicat Mexico 2009. The cover is scheduled to run for three years until October 2012.