SWISS RE TRANSFERS $170M IN RISK TO CAPITAL MARKETS

Swiss Re has transferred a further $170m in risk to the capital markets through its Cayman Islands-based Successor X catastrophe bond programme, protecting the reinsurer against Australian earthquake, North Atlantic hurricane and California earthquake risks. Swiss Re claimed that "the combination of Australia earthquake risk with US peak natural catastrophe risk is a unique structure that provides additional diversification to the (Insurance Linked Securities) market. The deal is the third for Successor X. A $150m bond was issued in December 2009, followed by a deal in May 2010 that transferred $120m of risk. The issue is in three classes. Class R is $65m in size and is rated 'B-'. Class S is $50m in size and is rated 'B-', while Class T is $55m in size and is unrated. Risk modelling and analysis was provided by Eqecat. All the tranches cover a three-year risk period, expiring December 2013.