GVB completes first ever Swiss Franc cat bond
Swiss insurer, Gebäudeversicherung Bern (GVB), has launched the first ever Swiss Franc catastrophe bond.
Issued via Hannover Re’s segregated accounts company, Kaith Re, the SFr70 million ($69 million) bond, Leine Re, is GVB’s first transaction within the catastrophe bond market.
The protection provided to GVB via the Gurten private catastrophe bond is positioned alongside traditional reinsurance on each layer of GVB’s traditional reinsurance programme.
It provides one year of annual aggregate protection to GVB on identical coverage terms to its traditional reinsurance programme. GC Securities served as sole placement agent.
Patrick Lerf, chief financial officer, GVB, said: “GVB appreciates the assistance of GC Securities, Kaith Re and the investors in successfully completing our first catastrophe bond. This transaction demonstrates our ongoing commitment to provide financial security to our policyholders.”
Frank Achtert, head of capital optimisation – strategic advisory EMEA, Guy Carpenter, said: “This transaction exemplifies the continued application of alternative capital to the European insurance and reinsurance communities and the successful result of Guy Carpenter bringing cedants together with investors.”
Cory Anger, global head of ILS structuring, GC Securities, added: “We are delighted to have facilitated GVB’s first catastrophe bond transaction and pioneered the first Swiss franc-denominated catastrophe bond. This private catastrophe bond transaction demonstrates the growing application of alternative capital to insurers, reinsurers, sovereigns and corporates globally as well as the ability for capital markets investors to provide meaningful capacity with coverage terms (including for non-modelled perils) consistent with the traditional reinsurance markets.”
