Swiss Re has launched the first ever multi-peril bond to the capital markets.
The bond provides $200 million in coverage against both North Atlantic hurricane and UK extreme mortality risk, through Swiss Re’s new Mythen Re programme.
Martin Bisping, head non-life risk transformation at Swiss Re believes that the bond represents a significant innovation in the ILS market.
“This innovation has provided Swiss Re with an efficient way of bringing risks to the capital markets, in a new combination that we believe is attractive to investors,” he said.
The issuance is comprised of two tranches of notes. The $120 million Class A notes, rated B+ by S&P, combine PCS North Atlantic hurricane risk with UK extreme mortality risk. The second tranche, rated B- by S&P, provides $80 million in protection for North Atlantic hurricane risk.
Swiss Re, multi-peril bond, Mythen Re