Swiss Re secures $1.5b credit facility

Zurich: Swiss Re said on Monday it had entered into a $1.5 billion long-term letter of credit facility with JP Morgan, giving the reinsurer room to take advantage of opportunities that may arise from the slowdown.

"As a result of the unprecedented turmoil in the capital markets, significant opportunities are emerging for well-capitalised insurance and reinsurance companies," Swiss Re said.

"Swiss Re is in a strong position to respond to increasing demands from our clients for reinsurance solutions, both in Property and Casualty, and Life and Health," the group said.

The letter of credit has a life of 20 years, with a pricing reset after the first 10 years and will replace and expand the existing arrangements Swiss Re has in place to meet US regulatory requirements for its life business, it said.