Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Vega Capital cat bond has ratings raised on lack of trigger events


Swiss Re issued a three year multi-peril catastrophe bond in 2008 called Vega Capital Ltd. (you can read all about Vega Capital in our catastrophe bond Deal Directory). The $150m transaction was designed to provide Swiss Re with cover for U.S. hurricane, California earthquake, European windstorm, Japanese typhoon and Japanese earthquake.

Now, Standard & Poor’s have announced that they’ve raised the ratings on Vega Capital’s class A and class B notes. The ratings have been raised to reflect the increased confidence that this deal will not default as it is now two years into it’s term. For the class A notes to be triggered there must be at least five qualifying events in the three year period the deal runs for. The class B notes can be triggered by four events in the same period. As no events have passed the set thresholds so far it seems unlikely either of these tranches of notes could be affected.

There has been one event which note holders were notified of, Hurricane Ike, although S&P say they do not expect Ike losses to breach the per event trigger level for Vega Capital.

The class A and class B notes both now carry an ‘A+’ rating. The two other tranches of Vega Capital (C and D) have never been rated.

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.