Swiss Re has successfully closed a multiyear stop-loss transaction with funding led by J.P. Morgan. The deal provides Swiss Re with USD 700 million in underwriting protection,
\nsupporting the Group’s pursuit of profitable growth. The financing builds upon an innovative hybrid transaction concluded with J.P. Morgan in April 2022, which was the first of its kind to combine bank financing and insurance-linked securities (ILS).<\/p>\n
Philipp R\u00fcede, Head of Swiss Re Alternative Capital Partners, said: “This transaction with J.P. Morgan effectively provides Swiss Re with costefficient capital that can be deployed in the current attractive market. This deal also represents another important step on Swiss Re’s Alternative Capital Partners’ journey, where we are increasingly using alternative
\ncapital to address our wider capital management needs, with the objective of lowering Swiss Re’s cost of equity.”<\/p>\n
The stop-loss transaction provides protection for severe underwriting
\nlosses across the Swiss Re Group for the financial years 2023\u20132027. In
\naddition to enabling Swiss Re to grow its business in favourable market
\nconditions, the transaction is expected to have a positive benefit for Swiss
\nRe’s regulatory and ratings capital requirements.<\/p>\n
The transaction utilises a newly established segregated account of the
\nexisting Matterhorn Re Ltd. special purpose insurer vehicle. The
\nsegregated account is financed via an initial USD 700 million facility
\nsupported by J.P. Morgan and its institutional investor base. The
\ntransaction has been structured with the potential to increase to
\nUSD 1 billion in size.<\/p>\n
The transaction is fully collateralised, with the proceeds to be held in notes
\nissued by the European Bank for Reconstruction and Development, which
\nhas Aaa\/AAA\/AAA (Moody\u2019s\/S&P\/Fitch, all stable) ratings.<\/p>\n
Swiss Re’s Alternative Capital Partners division encompasses Swiss Re’s
\nsell-side ILS capabilities and its retrocession management, allowing the
\nGroup to leverage a broad range of third-party capital as it grows its
\nbusiness. By doing so, Swiss Re is able to keep its exposures within clearly
\ndefined risk limits and improve the diversification of risk retained on its
\nbalance sheet.<\/p>\n
Press Release Swiss Re<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Swiss Re has successfully closed a multiyear stop-loss transaction with funding led by J.P. Morgan. The deal provides Swiss Re with USD 700 million in underwriting protection, supporting the Group’s pursuit of profitable growth. The financing builds upon an innovative hybrid transaction concluded with J.P. Morgan in April 2022, which was the first of its […]<\/p>\n","protected":false},"author":2,"featured_media":41134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[235],"tags":[7171,7170,2736,7172],"jetpack_featured_media_url":"https:\/\/insurancecorp.com.br\/pt\/wp-content\/uploads\/2023\/03\/swiss-re-logo1.jpg","yoast_head":"\n