Swiss Re secures coverage against underwriting-related losses

Swiss Reinsurance Co. Ltd. said Thursday it has secured $1.15 billion of coverage for four years against severe underwriting-related losses.

The deal combines a $1 billion senior loan from J.P. Morgan with $150 million in insurance-linked securities issued through Matterhorn Re Ltd., Swiss Re said in a statement.

The transaction uses a newly established segregated account of the existing Matterhorn Re Ltd. special purpose insurer vehicle, and institutional investors will participate in the $150 million in junior insurance-linked notes issued by this account.

The stop loss transaction is said to be the first such hybrid design of its kind.

The deal was handled by Swiss Re’s Alternative Capital Partners unit, launched in 2019 by combining the company’s Insurance-Linked Securities and Retro & Syndication teams.