LONDON (Reuters) - The World Bank has launched a $1.4 billion catastrophe bond covering Latin American earthquakes, the largest earthquake catastrophe bond on record, Aon Securities said on Wednesday.
The multi-tranche bond would provide earthquake relief for Chile, Colombia, Mexico and Peru, Aon Securities, which structured the bond, said in a statement.
The deal is part of the World Bank’s broader work in supporting the four countries in managing the risk of natural disasters, Aon said.
Earthquakes in Mexico last year contributed to the worst year on record for insurance losses from natural catastrophes.
Reporting by Carolyn Cohn; editing by Simon Jessop