Swiss Re places $100m First Coast Re II cat bond in Singapore, "excited" to promote Asian ILS market

Global reinsurer Swiss Re has placed the first catastrophe bond, a $100 million First Coast Re II (Series 2019-1), under Singapore's new insurance-linked security (ILS) framework for Security First Insurance Company.

Swiss Re Capital Markets acted as the sole structuring agent and bookrunner, and Swiss Reinsurance America Corporation (SRAC) acted as a transformer of risk between Security First and capital market investors to facilitate the issuance process.

As part of the transaction, Security First has entered into a reinsurance agreement with SRAC, which provides protection on an indemnity per occurrence basis with a cascading feature. SRAC subsequently ceded the risk via a retrocession agreement to the issuer. The $100 million Class A notes have a four-year risk period starting June 1, 2019 and provide protection against named storms and severe thunderstorms in Florida.

The transaction represents the first 144A catastrophe bond to be issued under the new ILS regulatory regime in Singapore.

“Swiss Re is excited to actively contribute to the development of Singapore as a global financial hub and promote a vibrant insurance-linked securities market in the region," said Jayne Plunkett, CEO Reinsurance Asia, Swiss Re. "This cat bond also underscores Singapore's capabilities in facilitating such a transaction.”

Jean-Louis Monnier, global co-head of ILS at Swiss Re Capital Markets, said: “Swiss Re is pleased to support the ILS framework in Singapore and contribute to the knowledge transfer around ILS transactions in the region. We were delighted to work with the Monetary Authority of Singapore (MAS) and Security First to make the first Rule 144A issuance in Singapore a success.

"The transaction was very well received by investors, which was reflected in the final terms and upsize to USD 100 million. The protection provided by SRAC seamlessly integrates with Security First’s reinsurance programme and incorporates a cascading feature mirroring traditional terms.”

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