The FINANCIAL -- Swiss Re announced on December 22 that it has entered into a USD 1.5 billion long term Letter of Credit (LoC) facility with JP Morgan.

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

Through the long term letter of credit facility with JP Morgan, Swiss Re demonstrates its access to long term financing at competitive rates. Maturing in 2028, the LoC facility has a life of 20 years, with a pricing reset feature after the first 10 years. This facility replaces and expands the existing arrangements Swiss Re currently has in place in order to meet US regulatory requirements for its life business.

Jacques AIG rain, Swiss Re’s Chief Executive Officer, said: “Notwithstanding the difficult capital market environment, we have concluded an attractive, long term arrangement with JP Morgan which will further enhance our position to be able to benefit from opportunities that arise from the current market environment. Clients turn to us as they look for a very strong counterparty in terms of superior capital and liquidity – and we are responding accordingly.”

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