Swiss Re is marketing another catastrophe bond on behalf of it’s subsidiary Swiss Reinsurance America Corp. Calabash Re III Ltd., the third issuance under the Calabash Re SPV, is a $100m bond designed to cover Swiss Re America from risks ceded to them through the reinsurance cover they provide to P&C insurer Ace Limited. The deal covers Swiss Re America for a portion of their book of reinsurance with Ace. The deal is to be split into two tranches; $86m of Class A notes to cover U.S. hurricane and earthquake risks and $14m of Class B notes which cover only U.S. earthquakes. Standard & Poor’s have given the tranches preliminary ratings of BB- and BB+ respectively.
An existing $100m Calabash Re deal expires this month, so it’s good to see this series being continued. We’ll bring you more details as they emerge.