Swiss Re issues securitization for two reinsured parties

Swiss Re Capital Markets announced the first catastrophe bond combining the risks of two primary insurers into a single transaction.

The securitization, which provides $200 million in multi-peril annual aggregate indemnity protection, will help backstop the U.S. perils of severe thunderstorm, hurricane, earthquake and winter storm for COUNTRY Mutual Insurance Company and North Carolina Farm Bureau Mutual Insurance Company.

Swiss Re stated the securitization was placed through Combine Re, a newly-established cat bond vehicle.

“This transaction is a confirmation of our client-centered approach to providing innovative and efficient risk-transfer solutions,” says Markus Schmutz, managing director, Swiss Re Capital Markets.