Swiss Reinsurance Co. is in the market with its Series 2011-3 deal under its principal-at-risk, variable-note program Successor X Ltd. 

According to a Standard & Poor's (which is rating the transaction's Class V-X4) presale report on the transaction, this will be the fifth series of notes issued under this program.

The rating agency is not rating the offering's V-F4 notes that are going to be issued at the same time. S&P has assigned a 'B- (sf)' preliminary credit rating to the class V-X4 notes

The rating agency said that the class V-X4 notes issued will be exposed to major North Atlantic hurricane risk in certain U.S. states and Puerto Rico. It will also haved to windstorms in Europe between November 2011 and November 2015.

Successor X is a Cayman Island exempted firm with all of its issued and outstanding share capital is held in trust for charitable purposes by Wilmington Trust (Cayman), S&P reported.

It added that Swiss Re will be the counterparty to the risk transfer contract. It is the principal operating firm. It is also the ultimate holding firm in a group of affiliated companies called the Swiss Re Group. Swiss Re has a global reinsurance business. It is also considered one of the biggest global reinsurers when it comes to premiums written and capital.

EQECAT was the calculation agent for previous Successor X deals, S&P said. But, for this offering, the calculation agent will be AIR Worldwide. AIR will calculate an index value following a qualifying event. The rating agency said that teh index value for U.S. hurricane peril will be based on industry losses reported by Property Claims Services and predetermined payout factors. The index value for European windstorm will be determined by utilizing industry losses that are reported by PERILS and predetermined payout factors.

Successor X's series 2011-3 class V-X4 notes will cover U.S. hurricanes that pass over a number of U.S. states and Puerto Rico. It will also cover European windstorm in 11 countries namely: Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and the U.K.

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