LONDON (Reuters) - Bermuda-based insurer Catlin Group Limited said on Friday it has issued a catastrophe bond that provides up to $150 million in cover against natural disasters.

The bond, which runs until the end of 2010, protects the London-listed insurer from large claims from US windstorms and earthquakes, European windstorms and Japanese windstorms and earthquakes.

The deal is unusual in that payment is triggered by claims within Catlin's own book of business exceeding an agreed threshold, rather than being based on independent data, such as industry losses, windspeed measurements or earthquake magnitude.

The notes, issued through Cayman Islands-based special purpose vehicle Newton Re, will pay investors a coupon of Libor plus 750 basis points. They are rated BB by credit ratings agencies Standard & Poor's and AM Best.

Lehman Brothers and Willis Capital Markets advised Catlin on the transaction. Insurers are increasingly turning to the capital markets to protect against catastrophe risks that are considered too big or volatile for traditional reinsurers to cover.