Swiss Re places first bonds to combine natural catastrophe and mortality risks, obtaining USD 200 million in protection for North Atlantic hurricane and UK extreme mortality risk
06 November 2012, New York
Swiss Re has obtained USD 200 million in coverage against North Atlantic hurricane and UK extreme mortality risk through its new Mythen Re programme. The bond issuance is the first time hurricane and mortality risks have been combined into a bond offering.
The issuance is comprised of two tranches of notes. The USD 120 million Class A notes, rated B+ by S&P, combine PCS North Atlantic hurricane risk with UK extreme mortality risk. The second tranche, rated B- by S&P, provides USD 80 million in protection for North Atlantic hurricane risk.
Martin Bisping, Head Non-Life Risk Transformation, at Swiss Re says: "The combination of hurricane and mortality risk is a significant innovation in the ILS market. This innovation has provided Swiss Re with an efficient way of bringing risks to the capital markets, in a new combination that we believe is attractive to investors."
The Class A tranche covers extreme mortality in the UK and complements the list of countries covered by Swiss Re's previously placed Vita programmes. The notes will run until the end of 2016, giving Swiss Re 5 years of protection for the life risk and 4 years for the non-life risk.
Matthias Weber, Swiss Re's Group Chief Underwriting Officer, says: "Swiss Re's innovative multi-peril bond has met strong investor interest which reflects the continued growing trust in Insurance-Linked Securities. ILS remains a key part of Swiss Re's Life and Non-life risk transformation strategy."
The notes were placed through Swiss Re's newly created SPRV Mythen Re Ltd. The private placement closed on 5 November 2012.
USD 120 million
North Atlantic hurricane & UK mortality
USD 80 million
North Atlantic hurricane
The Mythen Re notes were sold in a private placement pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended, (the “Securities Act”) and have not been, and will not be, registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
Notes to editors
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of over 60 offices globally and is rated "AA-" by Standard & Poor's, "A1" by Moody's and "A+" by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com or follow us on Twitter @swissre.
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