NU Online News Service, Dec. 14, 3:52 p.m. EST
Swiss Re said it has secured $106.5 million in coverage for natural catastrophe events for a three-year period through a catastrophe bond program placement.
The Zurich, Switzerland-based reinsurance carrier said it obtained the coverage against North Atlantic hurricane, European windstorm, California earthquake, Japanese earthquake and Japanese typhoon.
The cat bond was secured through Vega Capital Ltd., the second time the company has obtained a program through this special purpose vehicle.
Swiss Re said it is securing three years of natural catastrophe protection on both a multi-event and multi-peril basis through Vega. The special purpose vehicle allows multiple issuances of securities at any time.
The reinsurer used Vega in 2008 to secure a $150 million cat bond at that time.
"Vega allows Swiss Re to manage earnings volatility arising from peak natural catastrophe perils, over multiple events," said Martin Bisping, Swiss Re head of Non-Life Risk Transformation, in a statement. "It is an innovative cat bond that combines transparent indices for five different natural catastrophe scenarios with an efficient structure. Vega underscores our track record in product innovation, transforming high frequency cat events into capital markets."
The private placement closed on Dec. 13 and was structured and underwritten by Swiss Re Capital Markets.
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