$100m cat bond to cover US hurricane and earthquakes risks

Swiss Re has sold a $100m catastrophe bond covering exposures ceded to it by Ace, Reuters reports.

The bond was issued via special-purpose vehicle Calabash Re and split into tranches of $86m and $14m, the first covering US hurricane and earthquake risks, and the second US earthquake risk only.

Swiss Re priced the Class A notes to yield 15.25% over six-month Libor minus 20 basis points, and the quake-only Class B tranche to yield 5.5%.

Credit rating agency Standard & Poor's assigned ratings of BB- and BB+, respectively, to the two tranches last month.

Swiss Reinsurance America Corp is cedent for the deal, which will cover it against a portion of the exposure it has written for ACE American Insurance.

Websites

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

Topics