Swiss Re places Security First debut cat bond

Swiss Re Capital Markets has successfully structured and placed the issuance of USD75 million of insurance-linked securities by First Coast Re Ltd. on behalf of Swiss Reinsurance Americas Corporation which acted as transforming entity for Security First Insurance Company. 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.”