Swiss Re issues first Australian catastrophe bond
The insurance company bundles $100 million of earthquake and cyclone exposures into variable rate notes issued in the US.
Following on from similar bonds issued in Japan and Taiwan, Swiss Re has launched a $100 million catastrophe bond covering natural disasters in Australia. The three-year principal-at-risk variable rate notes have been sold to investors under 144a rules and are rated BB by Standard PoorÆs.
Swiss Re says the note program, launched through a special purpose vehicle called Australis, can be upsized to $250 million depending on how much new non-life business it writes in Australia. ôThe bonds have been...
To continue reading, please login or register for free