Swiss Re secures alternative capital in hybrid transaction

Swiss Re has this week closed a multi-year stop-loss transaction, with financing provided by JP Morgan, among other institutional investors. The transaction, which covers underwriting risks across the entire Swiss Re Group, is understood to be the first of its kind in combining bank financing and insurance-linked securities.

Swiss Re’s group CFO John Dacey, said: "The innovative partnership is a great example of how the Group considers all sources of capital holistically and aims to further enhance its flexible capital structure. With this transaction, the Alternative Capital Partners division delivers another material contribution to Swiss Re's efficient capital management."

The transaction uses a newly-established segregated account of the existing Matterhorn Re special purpose insurer vehicle. JP Morgan provides US$1bn financing via a senior loan, while various institutional investors will participate via a US$150m investment in junior insurance-linked notes issued by the segregated account.

With this deal, Swiss Re has protection from severe underwriting losses for the financial years 2022-26.

    Share Story:

YOU MIGHT ALSO LIKE


The Future of Risk & Resilience with AI & Data
CLDigital's Co-Founder, Tejas Katwala, joins CIR Magazine to discuss how CLDigital is transforming enterprise risk and resilience. By integrating business processes, AI and data-centric strategies, organisations can move beyond compliance to proactive risk management – simplifying operations, strengthening resilience, and driving business performance. Listen now to explore the future of intelligent risk management.

Communicating in a crisis
Deborah Ritchie speaks to Chief Inspector Tracy Mortimer of the Specialist Operations Planning Unit in Greater Manchester Police's Civil Contingencies and Resilience Unit; Inspector Darren Spurgeon, AtHoc lead at Greater Manchester Police; and Chris Ullah, Solutions Expert at BlackBerry AtHoc, and himself a former Police Superintendent. For more information click here

Advertisement