Swiss Re has obtained USD 200 million in coverage against North Atlantic hurricane
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.
| Class | Notional Amount | S&P Rating | Covered Event |
| A | USD 120 million | B+ | North Atlantic hurricane & UK mortality |
| C | USD 80 million | B- | 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.
