contingent capital

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 […]

One of the key events in the reinsurance cycle is currently underway in Germany. The Baden-Baden Reinsurance Symposium is another event which presents an opportunity for reinsurers, brokers and cedants to meet and discuss pricing, rates and availability of coverage for the forthcoming January renewals. One of the issues raised which is worthy of some […]

An initiative established under the Dodd-Frank Act by the U.S. Treasury to look at systemic risks and financial stability, the Financial Stability Oversight Council (FSOC), has just completed a study of contingent capital solutions to see if they are tools which could be leveraged to ward off financial crisis. The FSOC, which is charged with […]