Swiss Re Acts For Bermuda Special Vehicle

May 28, 2013

Swiss Re Capital Markets has structured and transferred $175 million of insurance-linked securities covering named storms and earthquake losses in North America, the Caribbean and Mexico on behalf of a Bermuda-based subsidiary of Allianz SE.

The securities were issued by Bermuda special vehicle Blue Danube II Ltd. on behalf of Allianz Argos 14 GmbH, a wholly-owned subsidiary of Allianz SE.

The transaction covers US and Canadian earthquake losses, as well as named storm losses in select U.S., Caribbean and Mexican authorities for three years, according to Swiss Re Capital Markets, which underwrote the deal.

“Cat bonds represent a key element of our protection landscape,” noted Amer Ahmed, CEO of Allianz Re, the reinsurance division of Allianz SE.

“The Blue Danube II Series 2013-1 issuance allows Allianz to lock in a competitive price over a period of three years for protection against natural catastrophes,” Ahmed added. “Thus, we can benefit from the attractive conditions which result from the strong demand for cat bonds in the capital markets.”

The transaction uses a modeled industry trigger transaction [MITT, developed by Swiss Re Capital Markets, which “takes industry loss estimates for the US and Canada and weighs them post-event based on certain applicable modeled portfolios.”

Swiss Re acted as joint bookrunner and joint structuring agent on the transaction.

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