Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Swiss Re on their role in Blue Danube cat bond


Reinsurer Swiss Re have published a press release discussing their role in the recently completed Blue Danube Ltd. catastrophe bond. Swiss Re Capital Markets, the arm of Swiss Re who deal with capital markets structuring and placement, acted as an arranger/structurer and also bookrunner on the transaction, which provides German insurer Allianz with three years of multi-peril cover, successfully placing $240m of insurance-linked securities issued by Blue Danube on behalf of Allianz.

Jean-Louis Monnier, Director and Head of ILS Europe at Swiss Re Capital Markets, commented; “We are very pleased to be able to support Allianz SE with their risk transfer needs, providing them with a multi-year solution covering exposure to peak hurricane and earthquake perils in the North Atlantic and North America.”

Swiss Re say in their press release that they developed the trigger for this cat bond, using a modelled industry trigger transaction (MITT) which takes industry loss estimates for the U.S. and Canada and weights them after the event against certain applicable modelled portfolios.

Swiss Re also note that the transaction utilizes a putable note issued by the International Bank of Reconstruction and Development (IBRD) as collateral for the notes and that this provides a LIBOR-based collateral return.

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.