Daily Insurance Industry News
Daily Insurance Industry News
Saturday 17th of November 2018
December 23, 2008

Swiss Re takes out $1.5bn loan

by David Masters

Story link: Swiss Re takes out $1.5bn loan

Swiss Re has agreed a $1.5 billion credit deal with JP Morgan.

Switzerland’s reinsurance giant will use the letter of credit to make acquisitions at favourable prices during the current global economic crisis.

The company said it is in a strong position to take advantage of significant opportunities that have emerged from the unprecedented turmoil in the capital markets.

CEO Jacques Aigrain said the credit will enhance Swiss Re’s ability to benefit from opportunities arising in the current market environment.

Swiss Re’s letter of credit facility with JP Morgan has a 20 year lifespan, maturing in 2028.

The arrangement replaces Swiss Re’s existing credit deal with JP Morgan.

Letters of credit are use in international transactions to ensure that payment will be received.

In addition to making acquisitions, Swiss Re said the credit will be used to replace and expand the arrangements the company has in place to meet US regulatory requirements for its life insurance business.


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