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# Catastrophe Bond Mystic Re II Winds Down
- URL: https://www.riskmarketnews.com/catastrophe-bond-mystic-re-ii-winds-down/
- Published: 2012-05-29T22:18:00.000Z
- Updated: 2012-05-29T22:18:00.000Z
- Author: Chris Westfall

Liberty Mutual\-sponsored catastrophe bond Mystic Re II gave its notice Tuesday that the $225 million vehicle had matured and would be canceled, according to the Cayman Islands Stock Exchange. The cancellation took effect on May 28 on the Series 2009 insurance-linked notes, [the filing says](http://www.csx.com.ky/announcements/announcements.asp?Id=3908&ref=riskmarketnews.com). Mystic II was issued in February of 2009 and covered Liberty Mutual from U.S. hurricane and earthquake (including fire following) and was rated ‘BB’ rating by Standard & Poor’s. The bond was modeled by AIR Worldwide. 

Mystic Re II index trigger was based on an insured industry loss level of $50 billion and exhaustion point is $55 billion.

Liberty Mutual’s $275 million successor catastrophe bond – Mystic Re III – took a sharp turn from its predecessor by moving to an indemnity trigger based on the ultimate net losses of the ceding insurer. [Mystic Re III was issued](http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3D2012++Mystic+Re+III+Ltd.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&bl&ref=riskmarketnews.com) in January. 

Mystic Re’s Class A cover 30.03% of losses in excess of $2.1 billion up to $2.433 billion, according to S&P, which rated the notes “BB”. The class B notes over 21.875% of losses in excess of $1.3 billion up to $2.100 billion and were rated “B” by S&P.

AIR acted as modeler on Mystic Re III while Aon Benfield Securities and Swiss Re acted as joint book runners.  
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