Quake cover for reinsurance from Ace requires two bonds

Swiss Re plans a $100 million catastrophe bond to cover exposures ceded to it by property-casualty insurer Ace, Reuters reported.

The bond will be issued via special purpose vehicle Calabash Re, will be split into tranches of $86m and $14m.

Credit rating agency Standard & Poor's has assigned a BB- rating to the Class A notes, which are exposed to US hurricane and US earthquake risk, and a BB+ rating to the Class B notes, which are exposed only to US quake risk.