Catastrophe equity put

{
  "id": "MLC-T-INS-000708",
  "term": "Catastrophe equity put",
  "field": "Insurance and risk management",
  "definition": "A financial instrument that provides an insurer with the right to sell newly issued shares of its stock to investors at a predetermined price following a major catastrophic event. This mechanism allows the insurer to quickly raise capital to cover large losses without diluting existing shareholders at a depressed market price. It acts as a contingent capital facility.",
  "url": "https://mlchart.com/terminology/insurance/catastrophe-equity-put/"
}