A magnitude 7.0 earthquake has struck the Pacific coast of Mexico close to the tourist heavy area of Acapulco. At this stage, it appears the World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond that provides the Mexican government with earthquake insurance protection is safe from loss, but it is hard to be certain on the limited information available to us.
The $485 million 2020 issued IBRD / FONDEN catastrophe bond provides risk capital to support Mexico’s FONDEN natural disaster fund, via reinsurance agreements with Mexican government-owned insurer Agroasemex S.A.
