Swiss Re has obtained another $170m in protection through the Successor X, catastrophe bond program, covering Australia earthquake, North Atlantic hurricane and California earthquake risks.

Successor X is a Cayman Islands exempted company financed through the offering of insurance-linked securities (ILS).

For this protection, Swiss Re has entered into a transaction with Successor X, to receive up to $170m of payments in the event of natural catastrophes such as Australian earthquakes, North Atlantic hurricanes and Californian earthquakes.

Swiss Re said that the transaction covers a three-year risk period, ending in December 2013.

Successor X issued notes linked to these risks to the capital markets. This transaction is the third takedown of the Successor X program, after a first bond for $150m in December 2009 and a second for $120m in May 2010.

Swiss Re head of Non-Life Risk Transformation Martin Bisping said that ILS transform (re)insurance risks into an investor-friendly asset class.

"By adding Australia earthquake to this transaction, we have created a bond that offers additional diversification for investors and have once again been able to demonstrate our capacity for innovation in this field," Bisping said.