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The issuance of IBRD CAR Mexico 2024, the Government of Mexico’s $420 million Mexico earthquake and Atlantic coast named storm catastrophe bond, “is a fundamental part of the federal strategy for Financial Management of Disaster Risks”, according to Héctor Santana Suárez, Head of Insurance, Pensions and Social Security in the Ministry of Finance of México.
The Government of Mexico’s new World Bank and IBRD facilitated catastrophe bond provides the country with parametric disaster insurance protection from the capital markets.
Two cat bond tranches totaling $295 million cover earthquakes, while a third tranche of $125 million covers named storms in the Atlantic.
The cat bonds provide financing for cat insurance in Mexico for four-years and leverage a parameteric trigger. They replace and increase the cat bonds previously issued for these perils by $60 million.
Mexico is very exposed to a range of natural disasters, with reportedly more than 40% of the country’s territory and nearly a third of the population being exposed to hurricanes, storms, floods, earthquakes, and…
