Swiss Re organises hurricane bond for state insurer
Swiss Re plans to sell a $125m catastrophe bond covering losses to North Carolina's insurer of last resort from hurricanes in the US state, Reuters reports.
Swiss Reinsurance America Corp will be cedent for the bond, to be issued via Cayman Islands vehicle Parkton Re.
Payout will be based on storm losses incurred by the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (NCJUA-NCIUA).
Swiss Re andGuy Carpenter are acting as arrangers for the deal.
Investors said the bond was expected to pay a coupon of 10.75% to 11.75% over Libor.
AIR Worldwide will be risk modeller for the transaction, which was rated B+ by Standard & Poor's.
