In its first deal, Nomura arranged an earthquake derivative between East Japan Railway Company and German reinsurance company Munich Re.
The derivative carries a $260 million notional principal and tenure of five years. East Japan Railway Company will pay a yen-denominated premium and will receive a US dollar payment in the event of an earthquake in the southern Kanto region of Japan if the magnitude exceeds a predetermined level.
Munich Re, the recipient of the earthquake risk from East Jap
The week on Risk.net, July 7-13, 2018Receive this by email