EQECAT, Inc. Provides Risk Analysis for AGF Catastrophe Bond

Business Wire, Nov 29, 2000

Business Editors/High-Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 29, 2000

EQECAT, Inc., a subsidiary of ABS.EQE, provided the risk analysis to support AGF Group's $129 million reinsurance securitization through a bond issued by Mediterranean Re, the first time a bond has been issued for windstorms in France and earthquakes in Europe.

Mediterranean Re provides five-year reinsurance protection against damages from major windstorms in France and earthquakes in the region of Monaco.

Two traunches of bonds were issued with $41 million in Class A notes and $88 million in Class B notes. The bonds are scheduled to mature Nov. 18, 2005.

Windstorm losses will be based on the peak windspeed measurements of a network of 70 wind speed recording stations in France operated by Meteo France. Earthquake losses will be based on the magnitude of the earthquake and the distance of the epicenter from Monaco as reported by the European Mediterranean Seismological Center.

EQECAT's loss model is based on two fixed-risk portfolios designed to replicate AGF I.A.R.T.'s actual insurance exposures in France and Monaco.

James J. Johnson, chairman of EQECAT, Inc., stated, "Our teams in Paris, the UK, and the US did a great job in working together to meet AGF's requirements for this securitization. I am very pleased at their commitment to our client."

EQECAT, Inc. (www.eqecat.com) a wholly owned subsidiary of EQE International, provides catastrophe management software and consulting to the insurance, financial communities and governments around the world. EQE is a member of the ABS Group of Companies.

For additional information, please contact Dennis Kuzak or Mike Vallejos in the U.S. (510/817-3100) or John Moore in London ( 44 (0) 207 377 4553)