(Re)insurer/Sponsor of the Year
Trading Risk Awards 2020
Winner of this category
With the establishment of Swiss Re's Alternative Capital Partners team in 2019, Swiss Re accelerated our work in the area of ILS and other types of alternative risk transfer. In August 2020, the team's early successes were recognized with the prestigious (Re)insurer/Sponsor of the Year Award from London's Trading Risk magazine.
The award capped a very productive year for the Alternative Capital Partners team. They grew Swiss Re's use of ILS instruments, raising $855m of U.S. hurricane and $80m of extreme volatility capacity through 3 separate Matterhorn Re cat bond issuances.
In addition, Swiss Re was the only sponsor to be able to materially increase its sidecar and other collateralized risk cessions, growing Sector Re by 60%. Thanks to new and expanded strategic partnerships with institutional investors, Swiss Re now has the largest outstanding sidecar in the market
The team also shaped two of the year's most innovative ILS structures. Sierra Ltd. was the first catastrophe bond to facilitate the hedging of potential widespread mortgage defaults caused by earthquakes. While First Coast Re Pte Ltd. facilitated the first 144A issuance out of Singapore, thereby offering stronger financial protection to the Asia-Pacific region.
Swiss Re's growth in this area in 2020 reinforces ILS as an enabler to Swiss Re's growth strategy in natural catastrophe reinsurance. With this added financial strengthen, Swiss Re is better placed to enable fast and effective response to natural catastrophe losses for our insurance partners, business and governments.
It's one more way we're making the world more resilient.