Swiss Re Capital Markets: Security First Insurance’s USD 75 million debut catastrophe bond successfully placed

ZURICH, 13-Jun-2016 — /EuropaWire/ — Swiss Re Capital Markets has successfully structured and placed the issuance of USD 75 million of insurance-linked securities by First Coast Re Ltd. on behalf of Swiss Reinsurance Americas Corporation (“SRAC”), which acted as transforming entity for Security First Insurance Company (“Security First Insurance”). The transaction is Security First Insurance’s debut catastrophe bond and covers named storms and severe thunderstorms in Florida.

Swiss Re Capital Markets underwrote the transaction via one class of principal at-risk variable rate notes issued by First Coast Re Ltd., a Bermuda exempted company licensed and registered as a special purpose insurer under the Bermuda Insurance Act 1978 and related regulations, each as amended.

Security First Insurance entered into a reinsurance agreement with SRAC providing protection on an indemnity per occurrence basis with a top and drop feature. SRAC consequently ceded the risk via a retrocession agreement to First Coast Re Ltd. The 75 million Class A notes have a three-year risk period starting June 1, 2016 and provide protection against named storms and severe thunderstorms in Florida.

Jean-Louis Monnier, Co-Head of ILS at Swiss Re Capital Markets, comments: “Swiss Re is pleased to provide support to Security First Insurance on its debut catastrophe bond issuance.  The transaction was very well received by investors, which was reflected in the final pricing terms. The protection seamlessly integrates with Security First Insurance’s reinsurance program and encompasses a top-and-drop feature mirroring traditional terms.”

Swiss Re Capital Markets acted as the joint structuring agent and joint bookrunner.

The First Coast Re Ltd. notes were sold pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject, to the registration requirements of the Securities Act and applicable state securities laws.

Notes to editors

Swiss Re Capital Markets
In the U.S., securities products and services are offered through Swiss Re Capital Markets Corporation, a registered broker dealer and a member of FINRA and SIPC.  In the European Union, securities products and services are offered through Swiss Re Capital Markets Limited. Swiss Re Capital Markets Limited is authorized and regulated in the U.K. by the Financial Conduct Authority, and benefits from a passport into certain Member States of the European Union pursuant to the Markets in Financial Instruments Directive 2004/39/EC. Swiss Re Capital Markets Corporation and Swiss Re Capital Markets Limited, together “Swiss Re Capital Markets”, are wholly owned subsidiaries of Swiss Re Ltd.

About Swiss Re
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk-taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of around 70 offices globally and is rated “AA-” by Standard & Poor’s, “Aa3” by Moody’s and “A+” by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed in accordance with the International Reporting Standard on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com or follow us on Twitter@SwissRe.

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