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Swiss Re launches new Successor as Munich closes $100mn Queen Street

Swiss Re is seeking to raise $50mn from a new rated Successor cat bond issue covering US hurricane and European wind risk, as well as from an unrated tranche of notes exposed only to US hurricane perils.

Sources described the unrated tranche as a "spicy" higher-risk issuance with an expected loss of 6.7 percent compared to a 3.76 percent expected loss on the rated tranche.

The four-year rated notes will provide reinsurance cover on a weighted industry-loss index basis using PCS reports for US wind and Perils data for European risk, according to an S&P presale note.

The US wind cover is heavily weighted towards peak Florida risk, with New York perils making a 10 percent contribution to the overall risk profile.

Swiss Re Capital Markets is marketing the issuance.

Meanwhile Munich Re has closed its latest Queen Street cat bond at $100mn, a third above its $75mn target.

The Queen Street IV Capital notes provide Munich Re with weighted industry loss-based reinsurance cover for US and European windstorm risk over a period of 3.25 years.

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