ZURICH, May 23 (Reuters) - Swiss Re Capital Markets has placed $925 million worth of natural catastrophe (natcat) bonds linked to California earthquakes, Swiss Re said on Tuesday.
Bermuda-based Ursa Re Ltd issued the securities, which will be used to protect the California Earthquake Authority (CEA) in what Swiss Re called the CEA's largest catastrophe bond issuance to date.
"With this deal the CEA is well prepared to handle the economic consequences of potential earthquakes," the Swiss reinsurer said.
The CEA struck two reinsurance agreements with Ursa Re to get protection against damage to residential homes from earthquakes in California.
Ursa Re collateralised its liabilities by issuing $925 million in notes to capital markets investors. The notes have a three-year risk period starting on May 17, 2017, Swiss Re added.
Swiss Re Capital Markets acted as sole structuring agent and joint bookrunner. (Reporting by Michael Shields; editing by Susan Thomas)