ZURICH May 23 Swiss Re Capital Markets has
placed $925 million worth of
natural catastrophe (natcat) bonds linked to California
earthquakes, Swiss Re said on Tuesday.
Bermuda-based Ursa Re Ltd issued the securities, which will
be used to protect the California Earthquake Authority (CEA) in
what Swiss Re called the CEA's largest catastrophe bond issuance
"With this deal the CEA is well prepared to handle the
economic consequences of potential earthquakes," the Swiss
The CEA struck two reinsurance agreements with Ursa Re to
get protection against damage to residential homes from
earthquakes in California.
Ursa Re collateralised its liabilities by issuing $925
million in notes to capital markets investors. The notes have a
three-year risk period starting on May 17, 2017, Swiss Re added.
Swiss Re Capital Markets acted as sole structuring agent and
(Reporting by Michael Shields; editing by Susan Thomas)