Amtrak as an insurance company

September 23, 2015

Amtrak sponsors PennUnion cat bond

Amtrak’s captive insurance company, Passenger Railroad Insurance, has launched a catastrophe bond for US storm surge coverage.

Passenger Railroad Insurance insures Amtrak, a passenger railroad company, and also provides some reinsurance coverage.Website Insert Call Me State DOTs copy

In this deal, PennUnion Re will look to issue a single Series 2015-1 Class A notes which will be sold to insurance-linked securities investors. The cat bond deal is for approximately $200 million.

PennUnion Re will be able to fully-collateralise the reinsurance agreement between itself and Passenger Railroad Insurance, which will in turn provide insurance protection to Amtrak.

The coverage from the cat bond will be on a per-occurrence basis, across a three-year period, providing protection against the perils of US storm surge, from named storms and earthquakes.

Read the full story from reporter Becky Butcher in Captive Insurance Times by clicking here.

 

 

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