Swiss Re launches cat bond program

In response to increasing frequency and severity of natural catastrophes, Swiss Reinsurance Co. recently placed a natural catastrophe bond program, which will provide the Company with US$950 million of protection for North Atlantic hurricane, European windstorm, Californian earthquake and Japanese earthquake risks.
The bond program, which is called “Successor,” will allow Swiss Re’s investors to choose between both different risk layers and triggers options within single and multiperil tranches. This will provide Swiss Re with added protection in the face of both against low-level earnings volatility and high-level catastrophic events.
The “shelf-offering” program will allow the Company to offer securities at any given time, according to a statement recently released by the reinsurer.
Swiss Re says the notes were purchased in a private placement by a variety of institutional investors.