EQECAT, Inc. Provides Risk Analysis for SCOR Re Catastrophe Securitization.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--March 16, 2000 EQECAT, Inc. a subsidiary of EQE EQE Equivalent Quantum Efficiency EQE Environmental Quality Evaluation International, announced today that it provided the risk analysis to support a 3-year, $200 million securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of U.S. earthquakes and resulting fires, Japanese earthquakes and resulting fires and European windstorm risk for the special-purpose Irish company Atlas Re. The transaction transfers to investors the risks associated with these three major territories, in three debt tranches -- Class A, Class B and Class C notes -- and Atlas Re in turn provides retrocessional coverage to SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed Re (SCOR) for first and subsequent events during the risk period. In order to meet the capital market's demand for high quality reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. data, EQE performed a detailed data review of SCOR's entire property and construction portfolio and applied a data quality filter to derive a Reference portfolio for each of the three territories. In order to achieve an approximation of the total portfolio, a gross-up factor was calculated as the ratio of the total portfolio loss to the reference portfolio loss for each territory at a given exceedance ex·ceed·ance n. The amount by which something, especially a pollutant, exceeds a standard or permissible measurement. Noun 1. probability, and was applied to the reference portfolio losses. To assist potential investors and rating agencies in evaluating the securities, EQECAT provided overall loss probabilities and peril/regional contributions to the risk and performed analysis of all known historical events for the last 300, 1300, and 50 years in the U.S., Japan, and Europe respectively. EQECAT developed its estimates using the state-of-the-art stochastic simulation implemented in its market leading USQuake(R), JapanQuake(TM) and Eurowind(TM) commercial EQECAT software to perform the analysis. EQECAT will update the analysis on an annual basis. The transaction was structured by Goldman Sachs, underwritten by Goldman Sachs and Marsh McLennan Securities and rated by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index , Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co. SCOR (www.scor.com) is France's largest reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. and one of the industry's worldwide leaders, serving clients in 150 countries from 29 offices around the world. EQE specializes in providing information, software and engineering consulting services for risk assessment and management. EQECAT is a leading developer of catastrophe software models and is a consultant to the property/casualty and financial services industries. EQECAT, Inc. (www.eqecat.com), a subsidiary of EQE International (www.eqe.com) of the ABS Group of Companies, is headquartered in Oakland, California. EQE has more than 600 employees worldwide. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion