The UnipolSai share shines on the Ftse Mib, where at the beginning of the afternoon it gained 1,3%, to 2,22 euros, achieving the best increase on the Milan Stock Exchange. The trend is in contrast with the general trend of the price list, which in the same minutes drops by 0,4%.
The purchases of the insurance company's shares were triggered by the placement of the first catastrophe bond aimed at covering the earthquake risk in Italy. We are talking about Azzurro Re, the first 'catastrophe bond' linked to the European risk of 2015.
The bond was structured and placed by Willis Capital Markets & Advisory (WCMA) for an amount of 200 million, revised upwards from the 150 million initially expected due to strong demand.
Catastrophe bonds pay a higher coupon than traditional bonds, but if the catastrophe in question occurs they may not repay all or part of the principal, thus allowing the issuer to have extra funds to repay the policyholders. Azzurro Re pays a spread of 2,15% and covers UnipolSai for three and a half years.
