NU Online News Service, May 7, 2:25 p.m. EDT
Swiss Re says it has secured $400 million in natural-catastrophe coverage through a catastrophe bond issued by Mythen Ltd.
The program allows Swiss Re to cede wind risks in both the United States and Europe to the capital markets.
Swiss Re sponsored three tranches of notes through Cayman Islands-registered Mythen Ltd, obtaining the $400 million in protection over three years against U.S. hurricanes and European windstorm.
Martin Bisping, head of non-life risk transformation at Swiss Re, says in a statement, “The transformation of (re)insurance risks into an investor-friendly asset class continues to be a cornerstone of our hedging strategy for peak natural-catastrophe risks. In order to grant us full flexibility to pursue this approach in the future, and to provide investors with bonds that have innovative and diversifying features, we have created the new Mythen program as a follow-on to our long-standing Successor program.”
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