Swiss Re structures and places issue

Swiss Re Capital Markets has structured and placed a €100m catastrophe bond issuance from special-purpose vehicle Green Valley, which ultimately protects French insurer Groupama against windstorm events in France.

Proceeds from the issue, the second from Green Valley, will provide Swiss Re with a source of coverage which will in turn will allow Swiss Re to extend the reinsurance protection it offers to Groupama. The payment trigger of the bond is baed on parametric indices. Risk analysis was provided by Risk Management Solutions.

The principal-at-risk, variable-rate bonds issued by Green Valley have been rated BB+ by rating agency Standard & Poor's and mature in January 2012.

"Groupama appreciates the success of this issuance, which complements Green Valley series 1 for the next 15 months," Groupama chief financial and risk officer Christian Collin said in a statement. "We intend to develop a long term partnership with investors in this sector as cat bond coverage is now fully integrated into our reinsurance risk management strategy."

“We are pleased to build on our long term partnership with Groupama to help support their risk management strategy, and optimise the risk transfer process and transaction execution as they access the capital markets for reinsurance capacity,” added Jean-Louis Monnier, head of European insurance-linked securities at Swiss Re. “Continued innovation and increased transparency are paving the way for growth and a return of primary insurers in the European cat bond market."

The initial offering of notes by Green Valley, also covering French windstorm, closed on 27 December 2007.