Swiss Re’s Kortis Capital deal as Life Transaction of the Year

Trading Risk, a publication covering all aspects of the trading of insurance-related risk, has named Swiss Re’s Kortis Capital deal as its Life Transaction of the Year.

The deal was honoured at the magazine’s 2011 annual awards dinner held in London earlier this month. More than 200 industry executives attended.


Announced by Swiss Re in December 2010, the transaction was an innovative transfer of longevity trend risk to the capital markets. Kortis Capital Ltd. provides cover to Swiss Re against a divergence in mortality improvements experienced between two selected populations.


The bond is based on population data and would trigger in the event there is a large divergence in the mortality improvements experienced between males aged 75-85 in England & Wales and males aged 55-65 in the US.


The winners of the nine award categories all demonstrated the spirit of commitment and creativity that is driving the sector's development and contributed to setting a benchmark of professionalism and achievement in this fast developing market, the publication noted.


Swiss Re Capital Markets acted as sole manager and bookrunner on the notes issuance. Risk modeling and analysis were performed by Risk Management Solutions Inc. (RMS). Collateral for the Kortis notes consists of securities issued by the International Bank for Reconstruction and Development.


Trading Risk is an industry publication providing insight on all aspects of the trading of insurance-related risk, regularly including news and analysis on the latest cat bond transactions and other insurance-linked securities, tracking in-storm derivative trading, industry loss warranties, a comprehensive deal directory and other essential market data, together with other forms of alternative trading, such as weather and emissions.


Earlier this year The Banker, a leading financial publication read in more than 150 countries, also named Swiss Re’s Kortis transaction as its Deal of the Year in the Structured Finance Europe category of its annual awards.