Swiss Re Capital Markets structures and places USD 175 million catastrophe bond for named storm and earthquake risks for Allianz Group
24 May 2013, New York
Swiss Re Capital Markets has structured and successfully transferred USD 175 million of insurance-linked securities issued by Blue Danube II Ltd. ("Blue Danube II") on behalf of a subsidiary of Allianz SE. The securities cover named storms and earthquake losses in North America, the Caribbean and Mexico.
Swiss Re Capital Markets underwrote the transaction which covers U.S. and Canadian earthquake losses as well as named storm losses in select U.S., Caribbean and Mexican territories for three years. The bond was structured on behalf of Allianz Argos 14 GmbH, a wholly-owned subsidiary of Allianz SE. Blue Danube II is a special purpose vehicle formed in Bermuda.
Jean-Louis Monnier, Director and Head of ILS Europe at Swiss Re Capital Markets, comments: “We are very pleased to continue to support Allianz SE's access to capital markets capacity. This new transaction uses a "MITT" trigger and complements last year's Blue Danube issuance, providing Allianz SE with a multi-year cover against named storm and earthquake losses in North America, the Caribbean and Mexico."
A modeled industry trigger transaction ("MITT"), developed by Swiss Re Capital Markets, takes industry loss estimates for the U.S. and Canada and weighs them post-event based on certain applicable modeled portfolios. The transaction utilizes a putable note, issued by the International Bank of Reconstruction and Development ("IBRD") and underwritten by Swiss Re Capital Markets, as collateral.
Swiss Re acted as joint book runner and joint structuring agent.
Standard & Poor's has published a BB+ (sf) rating for the Blue Danube II notes.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities laws, and the Issuer is not and will not be registered under the United States Investment Company act of 1940, as amended (the "Investment Company Act"). The Series 2013-1 Notes will be offered and sold only to investors who (i) are "Qualified Institutional Buyers" within the meaning of Rule 144A under the Securities Act that, with respect to U.S. persons, are also "Qualified Purchasers" for purposes of section 3(c)(7) of the Investment Company Act, (ii) are "Qualified Eligible Purchasers" as defined in U.S. Commodity Futures Trading Commission Rule 4.7. and (iii) are residents of, and purchasing in, and will hold these notes in, a Permitted U.S. Jurisdiction or a Permitted Non-U.S. Jurisdiction. These Notes are subject to substantial restrictions on transferability and resale, and may be subject to a lack of market liquidity.
Notes to editors
Swiss Re Capital Markets
In the U.S., securities products and services are offered through Swiss Re Capital Markets Corporation, a registered broker dealer and a member of FINRAand SIPC. Swiss Re Capital Markets Limited is authorized and regulated in the U.K. by the Financial Conduct Authority. Both Swiss Re Capital Markets Corporation and Swiss Re Capital Markets Limited, together Swiss Re Capital Markets, are wholly owned subsidiaries of Swiss Re Ltd.
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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