EQECAT Provides Risk Analysis Support for the Largest Cat Bond Deal to Date

Oakland, CA

August 20, 2003

EQECAT, Inc., a division of ABSG Consulting, Houston, Texas, today announced that it has provided the risk analysis for a $470 million bond, the largest cat bond issued to date based on total amount of risk transferred. The bond was issued through Phoenix Quake Ltd, Phoenix Quake Wind, Ltd, and Phoenix Quake Wind II, Ltd., which are special purpose Cayman Islands companies established by Swiss Re on behalf of Zenkyoren (Japanese National Mutual Insurance Federation of Agricultural Cooperatives). The five-year transaction, consisting of three individual tranches, covers potential losses from second event occurrences of major earthquakes and/or typhoons in Japan.

Rick Clinton, EQECAT's President, indicated that EQECAT was pleased to have provided Zenkyoren with the analytical support for this significant transaction. This is the second transaction to utilize "second generation parametric triggers" for both wind and earthquake perils. Second generation parametric triggers enable bond issuers to significantly improve risk transfer efficiency, compared to traditional parametric offerings. EQECAT worked closely with Zenkyoren to design parametric indices that would be highly correlated to potential insured losses in their portfolio. Clinton noted

"the use of second generation parametric index loss triggers enables issuers to transfer risk with lower basis risk than with previous first generation parametric triggers based on earthquake magnitude or storm track central pressure". He added that "the advantage comes from selecting physical severity parameters that correlate well with building damage and that are measured at or near the location of the underlying portfolio of insured risks."

However, investors, relying on credible independent scientific agencies, still achieve high transparency and rapid loss determination.

EQECAT is the leader in providing risk assessment services to the insurance-linked capital markets, and has participated in over $2.5 billion of transactions since 1997. EQECAT has provided the risk assessment for 60% (by value) of the property insurance linked securities outstanding at year-end 2002, and is a major provider of global catastrophe management software and services focusing on the property and casualty insurance industry. ABSG Consulting provides rational engineering-based solutions that blend 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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