ARMONK, N.Y.—Swiss Reinsurance America Corp. Ltd. has issued a $100 million, three-year catastrophe bond to provide capacity for a reinsurance agreement with ACE American Insurance Co. and its affiliates, Swiss Re said Friday.

The bond, which was issued through Cayman Islands-based Calabash Re III Ltd., has two tranches, one covering U.S. hurricane and earthquake risk and the second covering only U.S. earthquake risk.

The bond uses Swiss Re Capital Market’s Modeled Industry Trigger Transactions (MITT) trigger. This involves taking industry loss estimates from Jersey City, N.J.-based Insurance Services Office Inc.’s Property Claims Services unit and adjusting them by the modeled share of industry loss based on certain applicable portfolios, according to Armonk, N.Y.-based Swiss Re America.

Newark, Calif.-based Risk Management Solutions Inc. performed the risk modeling analysis.

ACE American, a subsidiary of Philadelphia-based ACE USA, previously has accessed capital markets capacity via Swiss Re America with Calabash Re I Ltd., in 2006, and Calabash Re II Ltd., in 2007, according to Swiss Re America.