Swiss Re has obtained additional $305m in protection through the Successor X catastrophe bond program, covering North Atlantic hurricane and California earthquake risks.
The transaction representing the fourth time that the Swiss Re used the Successor X program to transfer specific risks into the capital markets, freeing up capacity to allow the company to take on more risks from clients.
Swiss Re has entered into a transaction with Successor X to receive up to $305m of payments in the event of natural catastrophes such as North Atlantic hurricane and California earthquake.
Initially, it received a first bond for $150m in December 2009, a second for $120m in March 2010 and a third for $170m in December 2010.
The transaction covers a three-year risk period, ending in February 2014.
This transaction, combined with prior Successor program, have allowed Swiss Re to obtain approximately $2.3bn of protection.
Swiss Re’s head of non-life risk transformation Martin Bisping said that Successor’s flexible shelf program enables the company to quickly move on favorable market conditions and secure multi-year protection at attractive terms.