contingent capital

Lately the press is awash with stories about cyber risk, cyber insurance and the threat posed to companies by hackers, malware and exploits. The need for cyber insurance and reinsurance protection is clear, but with some suggesting $1 billion policies are required would the capacity be available?

Farmers Insurance Exchange (Farmers) has successfully renewed its $500 million catastrophe contingent surplus loan note facility for the third time. The facility provides Farmers with an option to access the capital markets following a major catastrophe event.

The German finance ministry has given the countries banks a green light to pursue the issuance of contingent convertible bonds, or CoCo’s, and other contingent capital deals as it clarified the instruments tax treatment.

French reinsurance firm SCOR has renewed its innovative contingent capital facility, which takes the form of a guaranteed equity line with UBS, and has expanded the cover it provides the reinsurer to €200m, covering both natural catastrophe and extreme life events.

Reinsurance firm Swiss Re has successfully completed its novel dual-trigger contingent capital security transaction, having sold CHF175m Swiss francs of notes linked to either the occurrence of a major decline in its solvency level or a major natural catastrophe loss.

Financial market sources have told us that reinsurance firm Swiss Re is looking to secure a new source of contingent capital protection for its solvency and balance sheet with the launch and marketing of a new dual-trigger contingent capital securitized bond issuance.

Reinsurer Swiss Re’s contingent capital bond issuance came to market last month and succeeded in securing the Swiss based reinsurer a $750m source of capital protection linked to its solvency from investors. The transaction received a lot of attention in the press as it came to market and was reported to have been oversubscribed as […]

Almost two weeks ago we wrote about the rumoured contingent convertible bond issuance which Swiss Re would be sponsoring as a way to protect its balance sheet against declines in its capitalisation. Contingent capital used in this way can provide broad protection against many risks which could impact a reinsurer like Swiss Re, from large […]

Contingent capital has been back on our radar recently thanks to the market rumours suggesting that reinsurer Swiss Re has been arranging a marketing roadshow for a contingent convertible bond issuance recently. The first time we wrote about contingent capital on Artemis it was not with reference to reinsurers however, it was discussing whether contingent […]

Reinsurer Swiss Re is in the news today regarding the use of contingent capital, after a bank told reporters at Dow Jones that the reinsurer plans to arrange a series of meetings to roadshow a contingent convertible bond issuance. The bank source is said to be one of the institutions arranging the investor meetings, or […]