Swiss Re, one of the world’s largest reinsurance companies, is back in the catastrophe bond market for what will be its third sponsorship this year, targeting $75 million or more in North America earthquake retrocession from a transaction, Artemis has learned.This issuance will be the fourteenth takedown under Swiss Re’s Bermuda-based Matterhorn Re catastrophe bond program, further extending the long list of cat bond transactions under a range of issuers we have tracked that the reinsurance company has sponsored over the years..This Series 2025-3 issuance is the third catastrophe bond from Swiss Re under its Matterhorn Re vehicle in 2025 so far.

Swiss Re sponsored a $225 million issuance back in January, securing retro reinsurance cover for North American earthquake and names storm risks.After which it secured a further $65 million in retrocession for the same perils from a Matterhorn Re Ltd.(Series 2025-2) issuance in July.

This latest cat bond sees Matterhorn Re Ltd.offering two tranches of Series 2025-3 cat bond notes that will be sold to investors and the proceeds used to collateralize retrocessional reinsurance agreements between the special purpose vehicle and Swiss Re, Artemis understands.The retrocession agreements will provide Swiss Re with a currently targeted $75 million or more in retro protection against losses from North American earthquakes, on an annual aggregate and weighted PCS industry loss index trigger basis, we are told by sources.

Specifically, the additional earthquake coverage Swiss Re is seeking is for the United States (excluding Hawaii), DC and Canada.This Matterhorn Re 2025-3 catastrophe bond issuance will provide the reinsurance company with aggregate retrocessional earthquake loss protection across three annual risk periods from the date of issuance, we are told, running to maturity in September 2028.A currently $50 million tranche of  Series 2025-3 Class A notes that Matterhorn Re is offering are set to provide Swiss Re with coverage that would attach at an aggregate loss index total of $45 billion and cover a share up to exhaustion at $110 billion, while a $5 billion franchise deductible will be enforced for loss events to qualify, we understand.

The Class A notes will come with an initial attachment probability of 1.71%, an initial expected loss of 0.97% and are being offered to investors with price guidance in a range from 2.75% to 3.75% A currently $25 million tranche of  Series 2025-3 Class B notes will provide Swiss Re with coverage that would attach at an aggregate loss index total of $21 billion and cover a share up to $45 billion, so effectively sitting beneath the Class A layer, while these have the same $5 billion franchise deductible.The Class B notes will come with an initial attachment probability of 2.88%, an initial expected loss of 2% and are being offered to investors with price guidance in a range from 4% to 4.5%, we are told.It’s good to see Swiss Re continuing to place emphasis on the catastrophe bond in 2025, as it looks to hedge and protect itself against peak catastrophe perils, with the support of capital market investors.

Given the timing of bringing a cat bond to market during wind season that offers diversification away from hurricane risk, while the secondary market is particularly well-bid indicating still strong demand for paper, it’s likely Swiss Re finds execution is positive for its latest Matterhorn Re cat bond.You can read all about this new catastrophe bond from Swiss Re, the transaction, and every other cat bond ever issued in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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