Jamaica Cat Bond Headed for Full Payout, World Bank Says (2)

Investors in Jamaica’s catastrophe bond now face a 100% payout after Hurricane Melissa set off a full trigger event, according to the World Bank.

Jamaica’s $150 million cat bond, which was arranged by the World Bank, is designed to provide funds to pay for only the most extreme weather events and is in addition to other layers of insurance the island has arranged. The last time a weather-related cat bond paid out in full was in connection with Hurricane Ian in 2022, when several bonds suffered a 100% loss in principal, according to Artemis, a data provider specialized in insurance-linked ...