Swiss Re Places $925M Cat Bond for California Earthquake Authority

May 23, 2017

Swiss Re Capital Markets Corp. has successfully structured and placed the issuance of $925 million of insurance-linked securities for the California Earthquake Authority.

Swiss Re Capital Markets underwrote the transaction through two classes of principal-at-risk variable rate notes issued by Ursa Re Ltd., a Bermuda-exempted company.

The CEA entered into two reinsurance agreements with Ursa Re Ltd. receiving protection on an indemnity, annual aggregate basis, against residential homes for earthquake damage in California. Ursa Re Ltd. collateralised its liabilities under the reinsurance agreements via the issuance of $425 million Class B Notes and $500 million Class E Notes to capital markets investors. Both Classes of Notes have a three-year risk period starting May 17.

Swiss Re Capital Markets and Swiss Re Capital Markets Ltd., together Swiss Re Capital Markets, are wholly owned subsidiaries of Swiss Re Ltd.

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