Swiss Re secures $700m alternative capital deal with J.P. Morgan
The deal will protect the company from losses and help its pursuit of profitable growth.
Swiss Re announced the closure of a multi-year stop-loss transaction with J.P. Morgan, providing the reinsurance company a $700m underwriting protection from severe losses for financial years 2023-2027.
The stop-loss deal will also support Swiss Re’s pursuit of profitable growth in favourable market conditions and give benefits for its regulatory and ratings capital requirements.
According to Philipp Rüede, Swiss Re’s Head of Alternative Capital Partners, the stop-loss transaction with J.P. Morgan will provide the company with “cost-efficient capital that is deployable in the current attractive market.”
Rüede added that the deal represented another step on its Alternative Capital Partners journey. “We are increasingly using alternative capital to address our wider capital management needs and lower Swiss Re's cost of equity,” he said.