Swiss Re has obtained $950 million protection against north Atlantic hurricanes, European windstorms, Californian earthquakes and Japanese earthquakes through a natural catastrophe protection program named Successor.
Swiss Re announced the placement of a natural catastrophe protection program called Successor, the follow-up vehicle to the Pioneer and Arbor programs. Successor is the latest in an established series of cat bonds that Swiss Re has issued since 1997, and underpins Swiss Re’s commitment to transferring insurance risks to capital markets.
Similar to the earlier programs, four single peak risks (north Atlantic hurricanes, European windstorms, Californian earthquakes and Japanese earthquakes) have been offered alongside multi-peril tranches.
The main distinguishing factor of the Successor program is the risk spectrum and triggers available across each of the perils. Investors can choose between different risk layers and trigger options within single peril and multi-peril tranches.
Jacques Aigrain, Swiss Re’s chief executive officer, commented: Successor represents the next generation of cat bond programs for Swiss Re. It provides us with protection against lower-layer earnings volatility events as well as higher-layer capital events.