Swiss Re, Munich Re structure $270M catastrophe bond

Swiss Re Ltd.'s Swiss Re Capital Markets Corp. and Munich Reinsurance Co. have structured a $270 million catastrophe bond transaction issued by Lakeside Re Ltd. III covering North American earthquake risk on behalf of Zurich Insurance Co. Ltd., the companies announced Thursday.

Lakeside Re III Ltd. is a Bermudian special-purpose reinsurer that provides Zurich three years of excess of loss reinsurance protection on an annual aggregate basis for earthquake losses in specific territories in North America.

The new bond replaces an expiring $225 million Lakeside Re III transaction issued in December 2009.