Swiss Reinsurance said it has obtained an additional $120 million of natural catastrophe protection through the Successor X program.
Successor X is the first cat bond transaction issued using a European windstorm index based on PERILS industry loss estimates.
Under the transaction, Swiss Re will receive up to $120 million of payments in the event of certain natural catastrophes including North Atlantic hurricane, European windstorm, and California and Japan earthquakes. Successor X, the latest offering in Swiss Re’s Successor programs, issued its first bond in December 2009.
The triggers for the other perils covered by this bond are based on parametric indices or modelled losses.
The Successor offering consists of three series of notes of $35 million, $40 million, and $45 million each. One class of the notes is rated “B-“ by Standard & Poor’s while the other classes are not rated. The collateral for this issuance of Successor X notes consists of treasury money market funds.
Swiss Re Capital Markets acted as sole manager and bookrunner on the note issuance. Risk modelling and analysis were performed by EQECAT.
