Debt



Innovative issuer

Swiss Re and its subsidiaries over time have issued, and in the future expect to issue, in addition to shares of the listed holding company, various forms of debt, hybrid and equity-linked instruments, on a standalone basis, as part of a debt issuance programme or as part of a loan note issuance facility.  Swiss Re continues to seek to optimise its capital structure as part of its capital management efforts, and does so in light of regulatory and rating capital requirements, as well as management’s view of risks and opportunities arising from underwriting and investing activities.

 

 

July 2017 – Notice of Redemption: CH0142132049 (Swiss Reinsurance Company Ltd)
March 2017 - Notice of Redemption: AU3FN0002531 and AU3CB0024743 (Swiss Reinsurance Company Ltd, via ELM B.V.)

 

Senior public debt


Maturity

Instrument

Coupon

Issued
in
1st
call
date

Currency
Nominal
(in m)

 ISIN / Issuer

Download1
2023 Senior Note 1.375% 2016 - EUR 750 XS1421827269
Swiss Re ReAssure Limited
P RD FS
2027 EMTN 0.75% 2015 - CHF 250 CH0262881441
Swiss Reinsurance Company Ltd
PS
2024 EMTN 1% 2014 - CHF 250 CH0249483683
Swiss Reinsurance Company Ltd
PS
2022 Senior Note 2.875% 2012 - USD 250 US87089HAA14
USU7514EAU48
Swiss Reinsurance Company Ltd (Guarantor)
P
2042 Senior Note 4.25% 2012 - USD 500 US87089HAB96
USU7514EAV2
Swiss Reinsurance Company Ltd (Guarantor)
P
2030 Senior Note 7.75% 2000 - USD 193 US36158FAD24
Swiss Re America Holding Corporation
P
2019 Senior Note 6.45% 1999 - USD 234 US36158FAB67
Swiss Re America Holding Corporation
P
2026 Senior Note 7% 1996 - USD 397 US36158FAA84
Swiss Re America Holding Corporation
P



Subordinated public debt


Maturity

Instrument

Coupon

Issued
in
1st
call
date

Currency
Nominal
(in m)

 ISIN / Issuer

Download1
Perp. Subord. Fixed-to-Floating Rate Callable
Loan Notes
2.6% 2015 2025 EUR 750 XS1209031019
Swiss Reinsurance Company Ltd (via ELM B.V.)
P
2044 Subord. Fixed Rate Resettable
Callable Loan Notes
4.5% 2014 2024 USD 500 XS1108784510
Swiss Re Corporate Solutions Ltd (via Cloverie Public Ltd Co)
P
2042 Subord. Fixed-to-Floating Rate
Callable Loan Notes
6.625% 2012 2022 EUR 500 XS0802738434
Swiss Reinsurance Company Ltd (via Cloverie Public Ltd Co)
P
Perp. Subord. Loan Note 6.3024% 2007 2019 GBP 500 XS0293392105
Swiss Reinsurance Company Ltd (via ELM B.V.)
P

 


Contingent Capital

Maturity Instrument Coupon Issued
in
1st
call
date
Currency Nominal
(in m)
ISIN / Issuer Download1
Perp. Pre-funded Perp. Fixed Spread Callable Notes 4.625% 2017 2022 USD 7502 XS1640851983
Swiss Re Ltd (via Demeter Investments B.V.)
P
2052 Pre-funded Subord. Fixed-to-Floating
Rate Non Step-Up Callable Notes
5.625% 2016 2027 USD 8002 XS1423777215
Swiss Re Ltd (via Demeter Investments B.V.)
P
2056 Pre-funded Subord. Fixed Rate Non
Step-Up Callable Loan Notes
6.05% 2016 2031 USD 4002 XS1389124774
Swiss Re Ltd (via Demeter Investments B.V.)
P
2050 Pre-funded Subord. Fixed-to-Floating
Rate Non Step-Up Callable Loan Notes
5.75% 2015 2025 USD 7002 XS1261170515
Swiss Re Ltd (via Demeter Investments B.V.)
P
2045 Subord. Contingent Write-off
Securities
7.5% 2013 2020 CHF 175 CH0224798972
Swiss Reinsurance Company Ltd
I P
2024 Subord. Contingent Write-off
Loan Notes
6.375% 2013 2019 USD 750 XS0901578681
Swiss Reinsurance Company Ltd (via Aquarius + Investments Plc)
P
Perp. Subord. Loan Note
With Stock Settlement
8.25% 2012 2018 USD 7503 XS0765564827
Swiss Reinsurance Company Ltd (via Aquarius + Investments Plc)
P
1

FS = Financial Statements
I = Insurance Trigger Disclosure
P = Prospectus
PS = Pricing Supplement
RD = Regulatory Disclosure

2 Pre-funded facility; currently no loan notes outstanding
3 US GAAP equity-accounted, classified as "contingent capital instruments" in US GAAP financial statements

The above tables only include capital markets debt issuances. For more details of Swiss Re’s debt positions please consult the debt note on pages 246 - 248 of the 2016 Financial Report.

 

An overview of Swiss Re's Group and legal entity ratings (including debt ratings) as well as Solvency figures can be found in our ratings section.

 

 

Swiss Re’s USD 10 billion EMTN programme serves as platform for issuing fixed-income securities. The programme puts a standard documentation framework in place governing all issues thereunder. It was launched in the year 2000 and has been updated annually since.

Swiss Re Ltd, Swiss Reinsurance Company Ltd and two of its subsidiaries can issue Notes in single tranches off the programme. Notes issued by subsidiary issuers are guaranteed by Swiss Reinsurance Company Ltd.

The shelf programme allows any of the four issuers to access the market quickly and to tailor the instruments according to the needs of the issuer and the investors. The terms of each issuance of Notes are set forth in a related Pricing Supplement. Notes can be listed on the Luxembourg Stock Exchange or the SIX Swiss Exchange.

Offering Circular

Issuers

  • Swiss Re Ltd
  • Swiss Reinsurance Company Ltd
  • Swiss Re Finance (Luxembourg) S.A.
  • Swiss Re Treasury (US) Corporation

Programme arranger

  • J.P. Morgan

Dealers

  • BNP Paribas
  • Citigroup Global Markets Limited
  • Credit Suisse Securities (Europe) Limited
  • Deutsche Bank AG, London Branch
  • HSBC Bank plc
  • J.P. Morgan Securities plc
  • Merrill Lynch International
  • RBC Europe Limited
  • Swiss Re Capital Markets Corporation
  • Swiss Re Capital Markets Limited
  • UBS Limited
    (Additional Dealers may be appointed)

 

2016

Swiss Re ranked third place for Global Capital's prestigious "Most innovative FIG issuer" award

This acknowledgement (for which the top two spots went to banks) followed a very active period in the capital markets for Swiss Re and recognizes our strategy of establishing separate capital markets funding access for Business Units as well as the top holding company across different parts of the capital structure – senior, subordinated and contingent capital.

In the senior space, Swiss Reinsurance Company Ltd issued a CHF 250m 12y bond at 0.75% in Q1 2015. Swiss Re Admin Re Limited issued a EUR 750m 7y bond at 1.375% in its inaugural capital markets transaction in Q2 2016.

In the subordinated space, Swiss Reinsurance Company Ltd proactively refinanced the majority of its EUR 1bn hybrid callable in May 2016 through a liability management exercise involving a concurrent cash tender and new issue. The transaction closed in Q2 2015 and resulted in the issuance of a new EUR 750m PerpNC10 at 2.6%, at the time the lowest ever coupon issued by an insurance company in perpetual fixed rate format.

Finally, Swiss Re Ltd issued three separate contingent capital instruments in Q4 2015, Q1 2016 and Q2 2016 in the form of pre-funded subordinated debt issuance facilities. The transactions, all issued in USD for an aggregate amount of 1.9bn, were placed with a diverse range of investors and have different tenors.

 

2013

Swiss Re received Euroweek's award for "Most impressive FIG issuer of subordinated debt and hybrid capital"

Swiss Re is the first non-bank financial institution to ever win this prestigious award from Euroweek, the leading news publication of the global debt and equity capital markets.

In addition to winning this award ahead of the likes of Barclays and Rabobank, Swiss Re also came in second place for "Overall most innovative borrower" behind Barclays.

These recognitions are the result of a very active period in the funding markets for Swiss Re which saw the issuance of a EUR vanilla 30NC10 subordinated deal, a CHF and a USD Reg S equity-conversion contingent capital instrument (the first ever in the (re)insurance space), a USD Reg S principal-write off contingent capital transaction (again the first in the sector) and a USD 144a dual-tranche senior deal, all since the start of 2012.

Euroweek
"Most impressive FIG issuer of subordinated debt and hybrid capital"

 

2012

Swiss Re was awarded IFR's Swiss Franc Bond of the Year

"Blazing the trail: For pioneering a radically new structure, capitalising on the strengths of its home ground, and providing much needed return in a yield-starved environment, Swiss Re’s SFr320m 7.25% perpetual non-call 5.5-year hybrid bond wins IFR’s Swiss Franc Bond of the Year."

"The Swiss Re hybrid was the most complicated, innovative and difficult bond to sell this year," said Denis Vucina, director of new issues syndicate, Swiss francs at Deutsche Bank.

This is not the first time Swiss Re has led the way in terms of innovative structures in the Swiss market, having brought one of the first hybrid issues in 1999. Nor is it likely to be its last. Indeed, Swiss Re followed its franc deal with a US dollar Asia-targeted transaction carrying a similar structure in March.

In a year that saw many new and exciting things occur in the Swiss market, the Swiss Re hybrid was the most novel. Its flexibility and popularity – it was quoted at nearly 110.00 by the middle of November – makes it an easy winner in this most interesting microcosm of a market.

International Financing Review
"Swiss Franc Bond of the Year 2012"

 

2008

Swiss Re received The Banker’s “Deal of the Year 2008 Award”

Swiss Re won The Banker’s “Deal of the Year 2008 Award” for the GBP 500 million Tier 1 hybrid. “Thanks to meticulous organisation, Swiss Re successfully launched its inaugural benchmark Sterling hybrid Tier 1 notes at short notice, when windows of stability were identified. The choice of Sterling as the issue currency provided investor and market diversification and arguably a better execution than euros or dollars would have allowed”.

 

The Banker Awards
"Deal of the year 2008"

 

2007

Swiss Re received Euromoney’s award for “Best Insurance Borrower”, KangaNews’ “Kangaroo Deal of the Year” award, insto’s “Hybrid Deal of the Year” award and FinanceAsia’s award for “Best Local Bond Deal”

Swiss Re won Euromoney’s “Best Insurance Borrower” award. Euromoney highlighted that “the reinsurer conducted four hybrid benchmark offerings in textbook fashion”. Furthermore Swiss Re “reopened the US hybrid market with its USD 750 million hybrid, for which it deserves kudos as it was considered a brave move by market participants at the time”.

Swiss Re was awarded KangaNews’ “Kangaroo deal of the year” for its AUD 750 million dual tranche hybrid issued in April 2007 due to the “measured build-up to a debut deal involving road showing and a willingness to listen and respond to investor input” and the fact that “when the deal was brought it was strongly executed and well distributed”. “The transaction was executed in a very short timeframe by Australian market standards and in particular for hybrid issues”.

Swiss Re was awarded insto’s distinction award 2007 as “hybrid deal of the year” for its AUD750 million dual-tranche hybrid issued in April 2007 in recognition of professional excellence.

Swiss Re was awarded FinanceAsia’s achievement award for “best local bond deal” for its AUD750 million dual-tranche hybrid issued in April 2007. “Investors liked the yield and were left begging for more when the issuer capped the deal size at A$750 million”. “This was a debut Kangaroo for the global reinsurer and helped the issuer to achieve its diversification objectives”.

 

Euromoney magazine
"Best insurance borrower"

 

KangaNews magazine
"Kangaroo deal of the year"

Insto
"Hybrid deal of the year"

FinanceAsia
"Best local bond deal"

 

2006

Swiss Re was awarded Reaction’s “Capital Raising of the Year” award and Credit Magazine’s “Hybrid Deal of the Year” award

Swiss Re’s capital markets’ transactions to fund the acquisition of GE Insurance Solutions totaling USD 7.6 billion won the award “Capital Raising of the Year” from Reactions. In addition the EUR 1 billion and USD 750 million hybrids were named “Hybrid Deal of the Year” by Credit Magazine.

With regards to the USD 750 million hybrid Credit Magazine commented that “Swiss Re succeeded in bringing a benchmark deal to a market mired in uncertainty”, while the EUR 1 billion hybrid was praised for its “innovative structure, that allowed Swiss Re to manage the threefold pressures of regulatory capital requirements, rating agency capital and tax regulations”.

 

Reactions magazine
"Capital raising of the year"

Credit magazine
"Hybrid deal of the year"

 

2005

Swiss Re received IFR's “structured equity award”

The “International Financing Review” (IFR) has honoured Swiss Re’s EUR 672 million mandatory convertible bond issued in July 2004 with its “IFR structured equity award”. This award is the most prestigious of its kind and is said to be the European financial services industry’s equivalent to Hollywood’s Oscars. This is the first time that Swiss Re received this award.

"The IFR award is one of four awards which Swiss Re’s mandatory convertible bond has received, and is by far the most prestigious," commented Jürg Hess, Swiss Re's Treasurer. The other three awards are the “Equity-Linked Deal of the Year” from both “The Treasurer magazine” and “Financial News” and "Deal of the year 2004 in Switzerland" by "The Banker" magazine.

International Financing Review
"IFR structured equity award"