Operational Re Ltd

Investment bank Credit Suisse’s Operational Re Ltd. ILS transaction, which saw a catastrophe bond structure used to secure insurance via the capital markets for its operational risk exposures, has helped the bank to reduce its risk weighted assets (RWA’s) by 1.25 billion Swiss Francs, according to a report.

Insurance giant Zurich is considering leveraging the capital markets and ILS investors as a way to offload more bank related operational risk, in similar arrangements to the recently completed Operational Re Ltd. deal for investment bank Credit Suisse.

Investment bank Credit Suisse’s Operational Re Ltd. transaction, which uses a catastrophe bond structure to secure insurance via the capital markets for operational risk exposures, has now been successfully settled at  a size of CHF 220m (around $223m).

According to sources, investment bank Credit Suisse’s Operational Re Ltd. transaction, which looks to emulate the catastrophe bond to secure insurance via the capital markets for operational risk exposures, is now set to launch in the coming days as a CHF200m (approx US$205m) bond.

The special purpose insurance (SPI) vehicle has now been registered for investment bank Credit Suisse’s Operational Re Ltd. transaction, which will see the firm look to secure insurance for its operational risks through a catastrophe bond-style ILS securitisation.

The CHF630m operational risk insurance linked catastrophe bond or ILS structure Operational Re Ltd. is still being marketed by global investment banking group Credit Suisse, with April now being targeted for completion and the structure split into junior and senior tranches.

Credit Suisse is making progress in its mission to leverage the insurance-linked securities (ILS) market and the structure of a catastrophe bond as a way to secure risk capital to back its operational risk insurance needs, with this unusual deal now marketing as Operational Re Ltd., we understand.