New credit agreed to snap up ‘significant opportunities’
Swiss Re has lined up $1.5bn (£1bn) from JP Morgan to enable it to buy businesses on the cheap during the world economic crisis.
It said: “ 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.
The company has a new 20-year long term letter of credit facility with JP Morgan, at competitive rates. It replaces and expands the existing arrangements Swiss Re currently has in place in order to meet US regulatory requirements for its life business.
Jacques Aigrain, Swiss Re’s chief executive, 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.”
