German bank Hypovereinsbank (HVB) has recently signed a number of weather deals in which it has securitised weather risk in the alternative risk transfer (ART) market.

Stefan Roggenkamp, head of alternative risk transfer and commodities at HVB in Munich, describes the approach as “groundbreaking”. Speaking at EPRM’s annual European conference in Amsterdam in May, he said HVB treats weather derivatives as a treasury product as a part of project finance.

The bank recently securitised €30 million