Palm Capital Ltd. – Full details:
Swiss Reinsurance Co. has arranged $22 million in protection against U.S. hurricane exposures through a catastrophe bond program the company is calling Palm Capital Ltd. a special purpose Cayman Islands exempted companies (SPC).
Proceeds from the bonds, which have four-year maturities, will back contracts between the special purpose vehicle and Swiss Re, indemnifying the Zurich-based reinsurer should a hurricane event qualify.
The financial contracts in Palm Capital Ltd. provide protection to Swiss Re based on parametric index triggers and have similar structural characteristics (e.g., index, attachment points, etc.) as the corresponding single peril tranches of the Pioneer deal.