JOHNSTON, R.I.—Factory Mutual Insurance Co. has placed a $300 million catastrophe bond to cover earthquake losses in the Pacific Northwest.

The private placement, the first of its kind for Factory Mutual, which does business as FM Global, is a “cost-effective, conservative and highly secure transaction that protects FM Global’s balance sheet and provides our policyholders with additional financial protection,” said Jeff Burchill, the insurer’s chief financial officer, in a statement.

Mr. Burchill said Johnston, R.I.-based FM Global’s scientists have validated the consensus from the scientific community that about once every 500 years, an earthquake along the Cascadia Subduction Zone could release significantly more energy than previously thought. The fault runs from southern British Columbia to northern California.

Investment banking firm Goldman, Sachs & Co. served as lead manager in the bond placement.