Swiss Re credit reinsurance securitisation deal has ratings cut, may be triggered


Standard & Poor’s have today lowered their rating on Crystal Credit, a securitization transaction structured similarly to a catastrophe bond. Crystal Credit was issued by Swiss Re in 2006 to provide themselves with indemnity against losses on their credit reinsurance portfolio. S&P now say the notes will likely be triggered due to increasing claims and losses affecting Swiss Re. The deal totalled €252 at the time of launch.

Losses to Swiss Re’s credit reinsurance business are fast approaching the point where the deals Class B notes could be impacted and investors principal be lost.

You can read more about the Crystal Credit transaction structure on the Swiss Re press release from the deals issuance here. Reuters have more details on the potential losses here.

Even if this deal sees a total loss we don’t expect it to affect investor confidence in the cat bond market. Shoring up credit over the last few years was never going to be an easy thing to make a success of given the state of the credit markets themselves and extent of losses being experienced.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Hurricane Bill to miss Bermuda, any turn to the west put’s the U.S. at risk

Hurricane Bill is continuing it's journey through the atlantic, picking up speed and becoming more powerful all the time. Currently...