Swiss Re has secured a multi-year deal that has protection from severe underwriting losses for the financial years 2022-2026.
The multi-year stop-loss transaction was provided by JP Morgan, among other institutional investors. The first of its kind transaction covers underwriting risks across the entire Swiss Re Group and combines bank financing and insurance-linked securities.
Swiss Re’s group CFO John Dacey speaks on the deal, “The innovative partnership is a great example of how the group considers all sources of capital holistically and aims to further enhance its flexible capital structure. With this transaction, the Alternative Capital Partners division delivers another material contribution to Swiss Re’s efficient capital management.”
Swiss Re said the transaction uses a newly-established segregated account of the existing Matterhorn Re special purpose insurance vehicle. JP Morgan provides US $1bn financing via a senior loan, while various institutional investors will participate via a US $ 150m investment in junior insurance-linked notes issued by the segregated account.