Guernsey's leadership and innovation was "central"
in achieving another world first in sustainable finance, with
confirmation that the very first humanitarian catastrophe bond
covering pure volcanic eruption has been completed using a Guernsey
insurance-linked securities (ILS) structure.
A $3 million privately-placed issuance, sponsored by the Danish
Red Cross, has been brought to market by Replexus and Howden
Capital Markets through a Guernsey-domiciled reinsurance structure,
Dunant Re IC Limited – an Incorporated Cell of Replexus ICC
(Guernsey) Limited, which is managed in Guernsey by Aon Insurance
Managers.
The bonds were settled using Replexus' unique
blockchain-based ILS platform, the ILSBlockchain. The catastrophe
bond covers the risk of eruption of 10 volcanoes across three
continents and raised $3 million from specialist cat bond
investors, with the capital set to be used to support humanitarian
aid in the aftermath of an eruption. Initial investors in
