Bermuda-based Kaith Re, a segregated accounts company belonging to Hannover Re, has facilitated the first ever Swiss Franc catastrophe bond.
Leine Re, a SFr70 million ($69 million) private catastrophe bond, will provide one year of aggregate protection to Swiss insurer, Gebäudeversicherung Bern (GVB), on identical coverage terms to its traditional reinsurance programme.
The cover is positioned alongside traditional reinsurance on each layer of GVB’s traditional reinsurance programme. GC Securities served as sole placement agent.
Patrick Lerf, chief financial officer, GVB, said: “GVB appreciates the assistance of GC Securities, Kaith Re and the investors in successfully completing our first catastrophe bond. This transaction demonstrates our ongoing commitment to provide financial security to our policyholders.”
Frank Achtert, head of capital optimisation – strategic advisory EMEA, Guy Carpenter, said: “This transaction exemplifies the continued application of alternative capital to the European insurance and reinsurance communities and the successful result of Guy Carpenter bringing cedants together with investors.”
Cory Anger, global head of ILS structuring, GC Securities, added: “We are delighted to have facilitated GVB’s first catastrophe bond transaction and pioneered the first Swiss franc-denominated catastrophe bond. This private catastrophe bond transaction demonstrates the growing application of alternative capital to insurers, reinsurers, sovereigns and corporates globally as well as the ability for capital markets investors to provide meaningful capacity with coverage terms (including for non-modelled perils) consistent with the traditional reinsurance markets.”
Kaith Re, Bermuda, Hannover Re, Reinsurance, Leine Re, Patrick Lerf, Frank Achtert, Cory Anger