NU Online News Service, Dec. 14, 3:52 p.m. EST

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Swiss Re said it has secured $106.5 million in coverage fornatural catastrophe events for a three-year period through acatastrophe bond program placement.

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The Zurich, Switzerland-based reinsurance carrier said itobtained the coverage against North Atlantic hurricane, Europeanwindstorm, California earthquake, Japanese earthquake and Japanesetyphoon.

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The cat bond was secured through Vega Capital Ltd., the secondtime the company has obtained a program through this specialpurpose vehicle.

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Swiss Re said it is securing three years of natural catastropheprotection on both a multi-event and multi-peril basis throughVega. The special purpose vehicle allows multiple issuances ofsecurities at any time.

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The reinsurer used Vega in 2008to secure a $150 million cat bond at that time.

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"Vega allows Swiss Re to manage earnings volatility arising frompeak natural catastrophe perils, over multiple events," said MartinBisping, Swiss Re head of Non-Life Risk Transformation, in astatement. "It is an innovative cat bond that combines transparentindices for five different natural catastrophe scenarios with anefficient structure. Vega underscores our track record in productinnovation, transforming high frequency cat events into capitalmarkets."

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The private placement closed on Dec. 13 and was structured andunderwritten by Swiss Re Capital Markets.

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