BOSTON, April 6, 2009 — AIR Worldwide Corporation (AIR) today announced that it has provided risk modeling and analytical services for more than 10 billion dollars in insurance-linked securities since 1996 and over 56% of total issuances since 2007.
“Risk modeling is a key element in the risk assessment of a catastrophe bond for issuers, rating agencies, and investors alike,” said Augustin Gas, head of ILS and alternative retrocession at French reinsurer SCOR. “AIR’s superior methodology and modeling expertise is crucial in providing the underlying analysis detailing the risk to the proposed bond. AIR also provides exceptional service throughout the process and delivers the analysis results within the scheduled timeframe.”
In 2008 AIR provided risk modeling and analytical services for 70% of the catastrophe bond capital issued. In 2009, AIR has been the modeling and calculation agent for all catastrophe bonds issued to date, including Atlas V, East Lane Re III Ltd. Series 2009-1, and Mystic Re II Ltd. Series 2009-1, totaling $575 million in new issuances.
“Atlas V was the first catastrophe bond to come to market in six months and is the first in a new generation of cat bonds,” said Erik Manning, director at Deutsche Bank. “AIR was also involved in last year’s pioneering Blue Coast Ltd. bond that used the recently developed LAZR (Long-Term Aggregate Zonal Reinsurance) hybrid trigger that combines state-level PCS® industry loss estimates and AIR’s model losses by county.”
AIR has modeled the risk profile for securities covering North America, Europe, and Asia while protecting against such perils as tropical cyclones, earthquakes, extratropical cyclones (winter storms), severe thunderstorms and wildfires. These instruments employ a variety of trigger types, ranging from parametric, indemnity and PCS industry loss index-based to modeled loss, and also include hybrids such as the combination of PCS industry loss and modeled loss.
“Since modeling the first large-scale catastrophe bond in 1996, AIR has modeled 47 transactions and is the modeling and calculation agent for over 50% of currently outstanding catastrophe bond issuances,” said David Lalonde, senior vice president at AIR Worldwide. “With models covering more than 50 countries worldwide and experience working with all types of bonds, AIR continues to be the modeler of choice for companies pursuing potential securitization options.”
In addition to providing the underlying risk analysis, AIR provides support for the offering materials and for the investor and rating agency meetings. AIR also provides investors with tools to evaluate the risk, including documentation concerning its models, modeling assumptions, what-if analyses of historical events, and breakdowns of risk by region and peril.
About AIR Worldwide Corporation
AIR Worldwide Corporation (AIR) is the scientific leader and most respected provider of risk modeling software and consulting services. AIR founded the catastrophe modeling industry in 1987 and today models the risk from natural catastrophes and terrorism in more than 50 countries. More than 400 insurance, reinsurance, financial, corporate and government clients rely on AIR software and services for catastrophe risk management, insurance-linked securities, detailed site-specific wind and seismic engineering analyses, agricultural risk management, and property replacement cost valuation. AIR is a member of the ISO family of companies and is headquartered in Boston with additional offices in North America, Europe and Asia. For more information, please visit www.air-worldwide.com.