EQECAT Provided Risk Analysis Support for $1.9 Billion Catastrophe Bond Transactions in First Eight Months of 2006

September 12, 2006

Oakland, CA

EQECAT Inc., an affiliate of ABSG Consulting Inc., and the leading authority on extreme-risk modeling, and analysis for catastrophe bonds and other insurance-linked securities, announced today that during the first eight months of 2006 it conducted seven risk analysis projects for catastrophe bond transactions totaling $1.9 billion.

"While it is too early to estimate the future issuance of 'cat bonds', this year's increase in market activity appears to be drawing more potential issuers and investors to the sector, providing further risk transfer options for the insurance and corporate markets," said Rick Clinton, President, EQECAT.

During 2005, almost $2 billion in catastrophe bonds were issued, EQECAT said.

"Catbonds" are insurance-linked securities enabling insurers to diversify their risk-capital sources. These bonds enable corporations, insurers, reinsurers, and government entities to issue fully collateralized 'debt-like' securities which pay the issuer some or all of the proceeds of the issue after the occurrence of damaging natural hazard events.

Catastrophe bond sponsors in the first eight months supported by EQECAT analyses were: ACE Insurance Group, with Calabash Re as the special purpose issuer; DREWCAT Limited as the special purpose issuer for a Gulf of Mexico offshore energy company; FM Global, with Cascadia II Limited as the special purpose issuer; Hannover Re, with Eurus Limited as the special purpose issuer; and Swiss Re, with multiple special purpose issuers for three transactions, Australis Limited, Successor Limited, and Redwood Capital.

Bonds Focused On Wide Range Of Perils, Set Market Milestones

The sponsored bonds focused on a range of perils: European winterstorm, North Atlantic hurricane, Gulf of Mexico hurricane, Pacific Northwest earthquake, California earthquake, Japan earthquake, Australia tropical cyclone, and Australia earthquake.

EQECAT's insurance risk assessment support, coupled with ABS Consulting's engineering expertise, provided the support to structure a catastrophe bond for offshore oil and gas facilities in the Gulf of Mexico, a first for the corporate market, Mr. Clinton said.

He also noted that the $950 million Successor issue sponsored by Swiss Re marked the largest single issuance in the 10-year history of the catastrophe bond market and demonstrated the increasing number of capital market investors drawn to this asset class.

"EQECAT is pleased to have been selected by its clients to assist in accessing the capital markets as a supplement to more traditional markets, which have been severely impacted by the 2004 and 2005 hurricane seasons," said Dennis Kuzak, Senior Vice President in charge of alternative risk finance.

In addition, he said,"some of our clients are viewing the capital markets as a multi-year risk transfer alternative to traditional markets, and setting up 'shelf' programs to issue subsequent tranches of risk on an as needed basis."

EQECATRisk Analyses Include Bond Structures With Variety Of Loss-Triggers

EQECAT's risk analyses encompass bond structures with a wide variety of 'loss-triggers', including indices, based on industry losses; parametric measures, such as windspeed and earthquake ground shaking intensity; and modeled losses.

"The variety of trigger options enables EQECAT's clients to optimize their risk transfer program while meeting the requirements of the investor market," Mr. Clinton said.

EQECAT Has Supported More Than $6 Billion In Transactions Since 1997

EQECAT is the leader in providing risk assessment services to the insurance-linked capital markets, and has supported more than $6 billion in transactions since 1997.

Its parent company, ABS Consulting, assists EQECAT by providing rational engineering-based solutions, blending state-of-the-art technology with practical loss-control measures, and innovative risk-transfer options.

EQECAT, Inc. provides state-of-the-art products and services to the global property and casualty insurance, reinsurance and financial markets. EQECAT is the technical leader and innovator of catastrophe risk management models that quantify exposure to a range of natural and man-made catastrophic risks.

Through its modeling software platform, WORLDCATenterprise™, EQECAT enables clients to quantify and manage the potential financial impact of natural hazards. WORLDCATenterprise includes 181 natural hazard software models for 95 countries spanning six continents. These models are based upon innovative applications of the latest science, engineering expertise, claims and exposure data and advanced mathematics.

EQECAT, a subsidiary of ABSG Consulting Inc., was founded in 1994 and is headquartered in Oakland, California.

For more information, contact:

pr@eqecat.com

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